Shares of Oracle fell nearly 5% in afterhours trading Monday following the release of the company’s earnings for its fiscal first quarter that came up short of Wall Street expectations for sales.
Earnings per share were 71 cents, excluding special items, while analysts were expecting 69 cents per share. Revenue came in at $9.18 billion while analysts were expecting $9.28 billion.
Oracle has come up short on revenue two of the last four quarters. Revenue increased by 1% from the same period one year ago said the company in its earnings statement.
Under its new reporting structure, Oracle receives the majority of its monies from its license support and cloud services segment. That segment ended the quarter with revenue of $6.61 billion which was 3.2% higher from the same period one year ago. Analysts were expecting revenue of $6.68 billion for that segment.
The on-premises license and cloud license took in revenue of more than $867 million, while analysts were expecting $865 million. Hardware revenue reached $904 million and services took in $813 million.
A week ago one analyst lowered estimates for the new couple of quarters at Oracle due to the company taking longer that was expected to complete its move into the cloud.
Earlier in the year, Oracle stopped the disclosing of the amount of money it was receiving from platform and cloud infrastructure offerings.
Oracle CEO Safra Catz during a conference call Monday said the company would have between 77 cents and 79 cents in per share earnings for its fiscal fourth quarter.
Wall Street analysts were expecting 79 cents per share for the same period. Catz said that she expects revenue at Oracle will be flat to up by 2% during its second quarter compared to last year using a constant currency evaluation.
Oracles added that its board of directors permitted it to spend over $12 billion on more share buybacks.
Analysts expected Oracle to increase its dividend, but officials announced the company opted not to.
Shares of Oracle were up 4% through the close of business on Monday for 2018, but fell over 4.8% during extended trading.
During its first quarter, the company announced availability of a new data-processing service that is cloud based and an extension of its European Organization for Nuclear Research partnership.