Oracle Corporation (NYSE: ORCL) is trading down today after reporting weaker-than-expected revenue for its third financial quarter.
Shareholders are also disappointed because the company’s guidance for revenue came in slightly below estimates as well. Oracle is now calling for $13.62 billion to $13.85 billion in revenue for its current quarter on up to $1.60 of adjusted per-share earnings.
In comparison, analysts were at $13.75 billion and $1.47 a share, respectively. On CNBC’s “Squawk on the Street”, Jim Cramer said:
The cloud stuff they’re talking about is very positive. They brought back a lot of stock. It’s very cheap. They’re working with Jensen. Oracle was mentioned with Nvidia. I like the call so much. Stock is down 4.0%, logical place to go.
On the plus side, Oracle Corporation raised its dividend to 40 cents per share – a 25% increase versus the same quarter last year. According to Cramer:
Listen to the call. What you hear is a company that bought Cerner, an okay medical health records business that’s taking the industry by storm, winning big logos. Big gross margin lifted Cerner. This is one of the better quarters.
His constructive view is in line with Guggenheim that reiterated its “buy” rating on this tech stock today. The firm’s $115 price objective suggests more than 35% upside from here.
Other notable figures in the earnings report include a 17% increase in cloud services and license support revenue – also better than expected. Oracle stock is now roughly flat for the year.
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