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Cramer: Oracle May Be Trying to Tell You Something

Wednesday, 19 Dec 2012 | 12:00 AM ET
No Huddle Offense: Not All Tech Is Created Equal
Mad Money host Jim Cramer shares his final thoughts of the day.

Cramer always pays close attention to earnings. But what Oracle, said – that may be truly illuminating.

"I'm talking about what Oracle said on the conference call," explained the Mad Money host. "Record numbers everywhere."

For example, new software and cloud revenues were up 18%. The United States business was up 22%, Europe showed 12% growth.

Read More: Scaling the Abyss - 9 'Buys' if Nation Falls Off Fiscal Cliff


Looking at the numbers, excluding items, earnings increased to $3.12 billion, or 64 cents per share, from $2.78 billion, or 54 cents a share in the year-earlier period.

Revenue increased 3.2 percent to $9.09 billion from $8.81 billion a year ago.

Analysts had expected the company to report earnings excluding items of 61 cents a share on $9.02 billion in revenue, according to a consensus estimate from Thomson Reuters.

Read More: Oracle Earnings Top Expectations; Shares Jump

Oracle
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Oracle

How is Oracle making all of this money? Who is spending?

Oracle's customers include the United Emirates, Expedia, Macy's, US Bancorp, Chevron, Time Warner Cable, Vodafone, and Wal-Mart.

"There are companies with lots of money that are growing aggressively," said Cramer And it appears they are unafraid to spend – even in the face of the 'fiscal cliff.'

"We're having an absolutely wonderful December so far," said Oracle co-founder and Chief Financial Officer Safra Catz. "So what's going on in Washington, I don't know who necessarily it is influencing today, but I can tell you our customers have been spending money with us, even in here in December."

And there's another angle that Cramer wants you to know about.

"A few years back Oracle spent $7.5 billion to buy Sun Micro a deal that was initially perceived as offering some merit but was subsequently criticized as a gigantic waste of money," Cramer explained.

"But - on this call, CEO Larry Ellison said that with this acquisition 'Sun has already proven to be the most strategic and profitable acquisition Oracle has ever made.'"

Cramer takes the commentary to mean that the Java programming software that came with Sun has become a huge winner - and now that the hardware portion of the acquisition has been downsized, he expects the results from the Sun deal will just get better and better.

What should you make of the results?

"At a time when the news headlines would leave you expecting a collapse in tech spending, Oracle's saying the opposite," Cramer concluded.

Perhaps, overall, tech spending remains alive and well after all.


Call Cramer: 1-800-743-CNBC


Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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