Earnings Results: Oracle stock slides on outlook after once again riding stock buybacks to earnings beat

Oracle Corp. shares declined in the extended session Thursday after the enterprise software company forecast its outlook, after the company topped Wall Street estimates again amid a wave of stock buybacks.

Oracle shares ORCL, -0.02% , which had bounced up and down about 1% after hours before the outlook was announced, were last down 3%, following a less than 0.1% decline to close the regular session at $53.05, a penny shy of the stock’s all-time closing high. Over the past 12 months, Oracle shares are up 1.4%, compared with a 2.2% gain in the S&P 500 index SPX, -0.09%  and a 1.8% rise in the tech-heavy Nasdaq Composite Index COMP, -0.16% .

On the conference call, Co-Chief Executive Safra Catz said she expects a 3-cents-a-share currency headwind, resulting in expected adjusted earnings of $1.05 to $1.09 a share, on revenue that’s from 2% lower to flat, or $11.03 billion to $11.26 billion.

Analysts surveyed by FactSet expect fourth-quarter earnings of $1.05 a share on revenue of $11.14 billion.

Oracle reported fiscal third-quarter net income of $2.75 billion, or 76 cents a share, compared with a loss of $4.05 billion, or 98 cents a share, in the year-ago period. Adjusted earnings were 87 cents a share, compared with 83 cents a share in the year-ago quarter, largely because of share repurchases: At the end of the third quarter, the company had 3.62 billion shares outstanding, compared with 4.12 billion in the year-ago quarter.

Oracle spent roughly $10 billion buying back shares for the third consecutive quarter, reporting repurchases of $29.89 billion in the past nine months. In the same nine-month period last year, Oracle spent less than $7 billion on share repurchases.

Previously: Oracle bought an earnings beat with share repurchases

Of the 33 analysts surveyed by FactSet, Oracle on average was expected to post adjusted earnings of 84 cents a share. Oracle had forecast 83 cents to 85 cents a share.

Revenue declined to $9.61 billion from $9.68 billion in the year-ago quarter. Wall Street expected revenue of $9.59 billion, according to 29 analysts polled by FactSet.

Oracle reported cloud services and license support revenues were $6.66 billion, while analysts expected $6.64 billion. Cloud license and on-premise license revenue came in at $1.25 billion, while analysts expected $1.24 billion.

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