Database software giant Oracle (ORCL) reported quarterly earnings after the market close Monday that exceeded earnings estimates but only matched analyst views on revenue.
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Oracle reported revenue of $9.77 billion, matching the consensus estimate of $9.77 billion, as polled by Zacks Investment Research and up 6% from the year-ago period. It reported adjusted earnings of 83 cents, beating the consensus estimate of 72 cents and up 20%, for its fiscal third quarter ended Feb. 28.
Oracle stock was down 3.2%, near 50.30 during after-hours trading on the stock market today. Shares hit a record high of 53.44 one week ago.
Oracle is undergoing a multiyear transition from traditional on-premise software licensing and maintenance support to a model driven by cloud subscriptions. Oracle began pushing aggressively into cloud computing about three years ago, negatively impacting sales and earnings.
Oracle Chief Executive Safra Catz, in prepared remarks with the earnings release, said "I feel quite confident that we will comfortably deliver on my original forecast of double-digit non-GAAP earnings per share growth for fiscal year 2018."
RBC Capital Markets analyst Ross MacMillan on Thursday raised his price target on Oracle to 55 from 51, with a rating of sector perform, reflecting a lowered tax rate and a more favorable currency exchange rate.
In a research note to clients, Macmillan wrote that Oracle is seeing improving traction with its cloud application strategy, "although we expect customers to move slowly and some inevitably would be lost to competition."
Oracle declared a quarterly cash dividend of 19 cents per share of outstanding common stock.
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