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Oracle stock drops 9% after weaker-than-expected earnings

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oracleSoftware titan Oracle reported underwhelming quarterly results this afternoon, leading the company’s stock to drop more than 9 percent in after-hours trading.

Oracle provides enterprises and governments with software and data-center hardware. Sales for the company’s fiscal second quarter disappointed Wall Street analysts. The company’s revenues were up just 2 percent to $8.8 billion, and profits amounted to 54 cents per share. Analysts had expected sales of $9.23 billion and a per-share profit of 57 cents

Digging into the specifics, it was hard to find good news. The company’s hardware sales were down 14 percent to $953 million versus the year-before quarter, and software sales rose a tepid 2 percent to $2 billion against the year-before quarter. On the bright side, revenue from software license updates and product support amounted to $4 billion, which is up 9 percent from the year-before quarter.

Oracle recently added a public cloud option for its customers after several years of CEO Larry Ellison dismissing the cloud. The company has doubled down further on cloud services with its planned acquisition of sales force automation company RightNow.

In the late afternoon Pacific time, Oracle’s stock on the Nasdaq exchange is trading at $26.54, which is nearly 9 percent lower than its close price today of $29.17.