(By Balaseshan) Oracle Corp. (NASDAQ: ORCL), an enterprise software company, reported a 18% growth in quarterly earnings on double-digit revenue growth in new software license and cloud subscriptions. Results exceeded Street's expectations, sending its shares up 1.64% in aftermarket.
Profit for the second quarter grew 18% to $2.6 billion, while earnings per share (EPS) soared 24% to $0.53. Adjusted EPS rose to $0.64 from $0.54.
Without the impact of the US dollar strengthening compared to foreign currencies, Oracle's EPS climbed 26% to $0.54, and adjusted EPS grew 19% to $0.65.
Revenue rose 3% to $9.09 billion, while adjusted revenue increased to $9.11 billion from $8.81. Without the impact of the US dollar strengthening compared to foreign currencies, both GAAP and non-GAAP total revenues would have been up 5%.
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Analysts, on average, polled by Thomson Reuters had expected a profit of $0.61 per share on revenue of $9.03 billion for the second quarter.
Oracle's earnings have gone past Street view twice in the past four quarters, and there has been no change to the consensus view during the past 90 days.
New software licenses and cloud software subscriptions revenues jumped 17% to $2.39 billion, while software license updates and product support revenues rose 7% to $4.26 billion. Hardware systems products revenues plunged 23% to $734 million, while hardware systems support revenue declined 6% to $587 million.
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"Q2 performance was strong and broad based as all geographies reported double-digit revenue growth in new software license and cloud subscriptions. Applications, middleware and database all had double-digit growth in new software license and cloud subscriptions, with applications leading the pack with growth of over 30%," said Oracle President, Mark Hurd.
ORCL closed Tuesday's regular session up 1.67% at $32.86. The stock has been trading between $24.91 and $33.29 for the past 52 weeks.