By Dhirendra Tripathi
Investing.com – Oracle stock (NYSE:ORCL) fell nearly 2% in Tuesday’s premarket trading after the software company’s first-quarter revenue came in below estimates.
The shock for the company came from its Cloud license and on-premise license business where revenue fell 8% to $813 million.
Total quarterly revenue was up 4% on-year to $9.7 billion, just shy of expectations but a sharp drop from the previous quarter and its lowest number in a year. Analysts noted the pace and scale of client acquisitions wasn't enough to support revenue growth expectations over 10%.
The company pointed out, however, that Deutsche Bank (DE:DBKGn), Pernod Ricard (PA:PERP) and Telefonica Brasil (NYSE:VIV) all signed up for its Cloud infrastructure business in the recent quarter.
The Board declared a quarterly cash dividend of 32 cents per share. Earnings per share of $1.03 beat expectations slightly. Oracle said earnings will be around $1.11 in the current quarter, while revenue is projected at $10.19 billion at the center of the range, which would equate to only 1% year-on-year growth.
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