Yahoo Finance's Jared Blikre joins Yahoo Finance Live to break down Oracle's latest earnings report.
- All right, back to the floor of the New York Stock Exchange. Jared Blikre has Oracle earnings for us. Jared?
JARED BLIKRE: That's right. It's a mixed report and we're seeing the stock trading down about 3% after releasing the first quarter fiscal year results. Now on the top line, it was a small miss coming in for adjusted revenue, coming in at 9.73 billion. That's a little bit lower than the estimate from the street, at 9.77 billion. Should know that it's up 3.8% year over year.
When you dig into the different segments here, adjusted cloud services and licenses support revenue. That's the biggest component, by far. That came in at or 7.37 billion. That's a little bit lower than the street estimate of 7.4 billion.
Cloud license and on premise license revenue, that came in at 813 million. That is lower than the street's estimate of 865 million. And then hardware services revenue also missed expectations, coming in lower at 763 million. Estimate was for 785 million. That figure was down 6.3% year over year.
Finally, one more, service revenue coming in at 781 million. That is greater than the Wall Street estimate of 738.2 million, up 8 and 1/2 year over year. Now the bottom line adjusted EPS beat expectations, coming in at $1.03, versus $0.93 a year ago and higher by $0.06 than the street estimate of $0.97. Adjusted operating margin also beat by 250 basis points, coming in at 45, which is what it was one year ago.
I also have a quote from the CEO, Safra Catz, saying Q1 results were excellent as constant currency revenue beat guidance by $100 million with all revenue segments exceeding forecasts and non-gaap earnings per share, beating guidance by $0.08. Oracle's two new cloud businesses, internet as a service and software as a service, now up 25% of our total revenue with an annual run rate of $10 billion. So again, a mixed report, the top line coming in just a hair under expectations. The bottom line adjusted EPS beating expectations guys.