Oracle Corporation ORCL shares are up 4 percent after-hours on Tuesday after the company reported better-than-expected third quarter earnings of 64 cents per share versus estimates of 62 cents. The company missed sales expectations ($9 billion versus $9.13 billion), but did announce a $10 billion buyback plan.
According to the initial tape, investors are happy.
The company additionally reported cloud revenues increased 40 percent year-over-year, while cloud SaaS/PaaS increased 61 percent YoY.
In a new note to investors, Drexel Hamilton's Brian White reiterated his Buy rating on the company. "Although Oracle has generally experienced weakness after quarterly reports over the past year, we believe the company's strong cloud performance in 3Q:FY16 is being recognized this evening and the stock represents one of the more defensive plays in tech," White wrote.
The analyst is particularly impressed by Oracle's cloud advances. "Oracle's SaaS/PaaS bookings rose by 77% in constant currency (vs. up 75% in 2Q:FY16) and SaaS/PaaS deferred revenue increased by 96%," he wrote.
Oracle added 942 new SaaS customers in the quarter and now has over 11,000 customers.
Oracle finished over $40 per share on Tuesday.
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