ORCL released earnings on friday for Q2 which missed revenue estimates. Earnings as a whole were considered positive because of beating the streets estimates with 34 cents per share in earnings and increasing operating margin from 41% to 46%. Q3 guidance was in line with street estimates which was another positive. New software licensing a forward looking measure of future sales was down 3%.
All that can really be said of these earnings is that revenues weren't stellar by any means, but minimizing costs allowed them to beat estimates. It really says something in a time when corporations are minimizing IT spending, ORCL is able to control costs to maximize earnings. Until the economy is able to recover, increasing margins are really the only way to beat estimates.
No comments:
Post a Comment