Oracle (NASDAQ:ORCL) on Thursday announced a mixed bag in its fiscal first-quarter report, but Wall Street shrugged it off Friday, with shares up about 1% in morning trading.
For the quarter, earnings were in line with expectations at 53 cents a share. But sales were a bit soft, with a decline of 2.3% to $8.18 billion, against Street expectations for $8.42 billion.
The problem continues to be the ailing hardware business. All in all, Oracle’s acquisition of Sun has proven to be a dud because of the intense competition in the server market.
To help offset the decline, Oracle has been moving aggressively into the cloud, partially through purchases, such as for RightNow and Taleo.
These investments likely will gain traction over the next few quarters. Oracle forecasts sales growth of as much as 4% for the current period, as well as earnings ranging from 59 to 63 cents per share.
– Tom Taulli, InvestorPlace