Oracle reported third-quarter earnings that trailed analysts’ estimates, according to a news release by Oracle on Thursday.

  • Oracle’s revenue jumped 4% from a year ago in the quarter, which ended Feb.28. Net income plunged 54% to $2.32 billion.
  • The massive decline in net income was attributable to two investments. The earnings were hurt by the falling share price of gene-sequencing company Oxford Nanopore and an operating loss at Arm server chip manufacturer Ampere Computing.
  • The company’s short-term deferred revenue stood at $7.87 billion, which is below the StreeetAccount consensus estimate of $8.01 billion.
  • Safra Catz, Oracle’s CEO, stated that the company continues to struggle with supply shortages, making it challenging for the company to meet every need as quickly as expected.
  • In Q3, Oracle announced its intention to purchase Cerner, a developer of software for managing health records, in a $28.3 billion cash deal.

Oracle stated that they expect $1.35 to $1.39 in adjusted earnings per share and 3% to 5% revenue growth in Q4. ORCL: NYSE is down 2.91%