INSTANT VIEW: Oracle profit up, shares rise
BOSTON (Reuters) - Oracle Corp (ORCL.O), the world's third-largest software maker, reported a higher quarterly profit on Wednesday, beating Wall Street estimates, as new software license revenue climbed 27 percent.
Shares rose to $22.93 in after hours trade from a close of $22.55 on Nasdaq.
COMMENTARY:
CHARLES DI BONA, ANALYST, SANFORD BERNSTEIN
"They're pretty solid results although we don't know how much is Hyperion and how much was BEA but all in all I'd say it's solid. Applications rebounded pretty healthily from a bad quarter last quarter. IT (information technology) spending isn't really falling apart at this point but we need to see what the second half of the year holds."
ANDY MEIDLER, ANALYST, EDWARD JONES:
"These are strong results and evidence that Oracle's hard-charging sales culture and ever more diversified product line-up is paying off.
"The big thing is that applications revenue was good, database was good and the Americas, at about 18 percent year over year growth, we think was solid given the tough business environment we're in.
"Oracle and the rest of technology is an economically sensitive area. We think that software in particular is an area that should see strength given its productivity enhancing ability."
DAVID GARRITY, RESEARCH DIRECTOR, DINOSAUR RESEARCH
"Nobody expected the May quarter to come in as strong as it did. (Billionaire CEO) Larry (Ellison) is just going to have to buy a bigger boat.
"Certainly the benefit is coming from BEA."
On 27 percent license growth: "That starts to go against some of the view that the global economy is weakening.
BRENDAN BARNICLE, ANALYST, PACIFIC CREST SECURITIES
"The results look very clean, very encouraging. They show a nice improvement and recovery in the applications side of the business (from the March quarter).
"It is Oracle's fourth quarter. I always caution investors about reading too much into that. Oracle can pull through a lot of business in the quarter ... Customers recognize they can get the best discounts of the year in this period."
TRIP CHOWDHRY, ANALYST, GLOBAL EQUITIES RESEARCH:
"I don't think we can say they beat the consensus. I don't think Oracle is being transparent. The press release should have said, 'These are the numbers with BEA and these are the numbers without BEA.' I don't think the press release as written is in the best interest of shareholders."
(Reporting by Duncan Martell and Eric Auchard, editing by Peter Henderson)
