Oracle shares fall after revenue misses analyst estimates

Oracle shares fell almost 5 percent in extended trading on Monday after the company reported fiscal first-quarter sales that missed analysts' estimates. Executives will discuss the results with analysts on a conference call at 5 p.m. Eastern time.

Here are the key numbers:

• Earnings: 71 cents per share, excluding certain items, vs. 69 cents as expected by analysts, according to Thomson Reuters.
• Revenue: $9.19 billion, vs. $9.28 billion as expected by analysts, according to Thomson Reuters.

Oracle's revenue rose 1 percent from a year earlier in the quarter ending Aug. 31, the company said in a statement.

Under its revised reporting structure, Oracle gets most of its money from the segment it calls cloud services and license support. The segment generated $6.6 billion in revenue, up 3.2 percent from the prior year. Analysts had been looking for the segment to hit $6.68 billion in revenue, according to FactSet.

The second-biggest unit is the cloud license and on-premises license business, which generated revenue of $867 million, compared with the $865 million consensus estimate among analysts.

Hardware revenue came in at $904 million, while services revenue was $813 million.

Last week, analysts at KeyBanc Capital Markets lowered their estimates for Oracle's next few quarters.

"Oracle's move to the cloud is taking longer than expected, is consistent with what we have heard from the channel, and with reduced disclosures, we have lesser visibility into then company's progress," they wrote. Earlier this year Oracle stopped disclosing how much money it was getting from cloud infrastructure and platform offerings.

With respect to guidance, analysts polled by Thomson Reuters expect Oracle to forecast 79 cents in earnings per share, excluding certain items, for the company's fiscal second quarter. The outlook is typically provided on the conference call.

Oracle shares are up 4 percent since the beginning of the year as of Monday's close. The stock fell 4.8 percent to $46.84 after hours.

In the fiscal first quarter Oracle announced the availability of a new cloud-based data-processing service and the extension of its partnership with the European Organization for Nuclear Research.

This is breaking news. Please check back for updates.

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