Oracle sales miss analysts’ estimates, hurt by rising dollar
March 17, 2015 04:45 PM
(Bloomberg) -- Oracle Corp. reported fiscal third-quarter sales that missed analysts’ estimates, hurt by a rise in the U.S. dollar and weak corporate demand for cloud software.
Revenue in the period that ended Feb. 28 fell to $9.33 billion, and profit before certain costs was 68 cents a share, the Redwood City, California-based company said Tuesday in a statement. On average, analysts projected $9.47 billion in revenue and profit of 68 cents, according to data compiled by Bloomberg.
Oracle’s sales have been hurt in recent years as it lagged behind rivals like Salesforce.com Inc. and Workday Inc. in delivering business software and services via the Internet. Though the company recently began its own expansion into the cloud, that push has so far failed to boost sales growth above 5% for the 14th quarter in a row. The software maker is also grappling with foreign-currency fluctuations that have reduced the value of revenue generated outside the U.S.
“The FX thing has been the black cloud on the whole market,” said Dan Morgan, a senior portfolio manager at Synovus Securities Inc., which owns 1.17 million Oracle shares. In Oracle’s last full fiscal year, 56% of revenue came from overseas, according to data compiled by Bloomberg.
Third-quarter net income fell to $2.5 billion, or 56 cents a share, from $2.57 billion, or 56 cents, a year earlier.
The shares of Oracle fell 1.2 percent to $42.87 at the close in New York, leaving the stock down 4.7 percent this year.