Instant view: Oracle shares drop after earnings report
NEW YORK | Thu Jun 23, 2011 6:08pm EDT
(Reuters) - Oracle Corp reported better-than-expected quarterly earnings on Thursday, but that failed to calm investor fears that spending on technology software and hardware could be in jeopardy.
Shares of the world's No. 1 database software maker fell 5 percent after the earnings report.
Commentary:
TRIP CHOWDHRY, ANALYST, GLOBAL EQUITIES RESEARCH
"Traditionally, in the fourth quarter they usually beat by a huge margin. This time they just managed just to beat. The other issue, because of these higher gasoline prices, this is impacting IT spend. Investors won't believe Oracle's guidance... IT spend has slowed down. Any company that is in the technology is going to get impacted."
Given expensive oil prices and "a very terrible geopolitical backdrop... they have done an exceptional job."
KIM CAUGHEY FORREST, ANALYST, FORT PITT CAPITAL GROUP
"The revenues were very strong. It looks like, in same constant currency, hardware may have been a little soft."
"I guess what we are interested in is their commentary going forward. The revenue shows the strength of their sales organization. Investors are really trying to find out now what's the temperature from the tech world. We will find out on the call."
(Reporting by Jennifer Saba and Liana B. Baker in New York and Bill Rigby in Seattle; Compiled by Paul Thomasch)
Credit: Reuters (www.reuters.com)
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