Oracle Beats Analyst Estimates on EPS

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Oracle (NAS: ORCL) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 29 (Q3), Oracle met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly, and GAAP earnings per share increased significantly.

Margins expanded across the board.

Revenue details
Oracle notched revenue of $9.04 billion. The 31 analysts polled by S&P Capital IQ predicted revenue of $9.02 billion on the same basis. GAAP reported sales were 3.1% higher than the prior-year quarter's $8.76 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.62. The 37 earnings estimates compiled by S&P Capital IQ averaged $0.56 per share on the same basis. GAAP EPS of $0.49 for Q3 were 20% higher than the prior-year quarter's $0.41 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 78.9%, 190 basis points better than the prior-year quarter. Operating margin was 37.8%, 230 basis points better than the prior-year quarter. Net margin was 27.6%, 350 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $10.97 billion. On the bottom line, the average EPS estimate is $0.77.

Next year's average estimate for revenue is $37.22 billion. The average EPS estimate is $2.38.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,361 members rating the stock outperform and 210 members rating it underperform. Among 797 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 759 give Oracle a green thumbs-up, and 38 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oracle is outperform, with an average price target of $33.49.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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