Oracle, FedEx Report Strong Fiscal Q4 Earnings

Two market leaders in their respective industries -- software and cloud services giant Oracle Corp. ORCL and transportation logistics major FedEx FDX -- also reported fiscal Q4 2018 earnings results after the bell today. Keeping in mind we're coming off a regular trading day rife with worry over a possible trade war brewing between China and the U.S., which may have some impact on stock price results even after earnings results are released.

Initially upon releasing fiscal Q4 results, Oracle shares had shot up 4%, though over the past several minutes the stock has begun to sell off from that point. Quarterly numbers were quite favorable, however: earnings of 99 cents beat the Zacks consensus estimate by 5 cents, and beat the year-ago number by 11.2%. Revenues also topped expectations to $11.29 billion from the $11.19 billion analysts had been looking for.

Cloud services brought favorable year-over-year comps of 8% to $6.8 billion, which is good because Oracle had found itself slipping behind cloud-based services competitors of late. And following a robust surge in stock prices early this year, Oracle is still attempting to claw back. Guidance on the upcoming conference call ought to bring clear sentiment, especially regarding cloud-based expectations, but for now market reaction is fairly muted. For more on ORCL earnings, click here.

Zacks Rank #2 (Buy)-rated FedEx also outperformed expectations on the headlines: $5.91 per share vs. the $5.72 expected on $17.3 billion in sales vs. the $17.19 billion estimated were favorable for the global delivery firm. Earnings results, year over year, climbed roughly 40%, while operating margins grew 3.6%. This marks the third straight earnings beat for FedEx.

Due to adjustments being made on the company's retirement plan accounting, initial full-year 2019 guidance numbers were not released with the earnings data today. Also, with the shadow of a potential trade war creeping in, FedEx may be one of those companies most deeply affected by a major rift between shipping U.S. and Chinese goods. Shares are up moderately following the results, but, like Oracle, FedEx still has a ways to go to reach its 52-week highs realized in January of this year. For more on FDX's earnings, click here.

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