Oracle Corporation (ORCL) released its first quarter earnings on Monday, September 9. The multinational computer technology company’s stock rose by more than 13% after the release of the report.

The company posted revenue of $13.31 billion for the quarter. This was up 7% from $12.45 billion reported in the same quarter last year and was above analysts’ expectations of $13.23 billion.

"As Cloud Services became Oracle's largest business, both our operating income and earnings per share growth accelerated,” said Oracle CEO, Safra Catz. “But the biggest news of all was signing a MultiCloud agreement with AWS—including our latest technology Exadata hardware and Version 23ai of our database software—embedded into AWS cloud datacenters. AWS customers will get easy and convenient access to the Oracle database when we go live in December later this year.”

Oracle reported first-quarter net income of $2.93 billion or $1.03 per adjusted share. Last year at this time, the company reported net income of $2.42 billion or $0.86 per adjusted share.

The company’s cloud services segment revenues were up 21% to $5.6 billion in the quarter. Cloud license and on-premise license segment revenues were up 7% to $870 million. Oracle’s first quarter cloud infrastructure revenue climbed 45% to $2.2 billion. Oracle’s board of directors declared a quarterly cash dividend of $0.40 per share of common stock. The cash dividend will be due to the stockholder of record on October 10, 2024, with an anticipated payment date of October 24, 2024.

Oracle Corporation (ORCL) shares closed at $162.03, up 14% for the week

Dave and Buster’s Releases Earnings Report

Dave and Buster’s Entertainment, Inc. (PLAY) announced its second quarter earnings on Tuesday, September 10. The arcade company’s stock rose by nearly 14% after the company reported better-than-expected earnings.

Revenue reached $557.1 million for the second quarter. This was an increase of approximately 3% from revenue of $542.1 million reported in the same quarter last year but below analysts’ expectations of $560.6 million.

“We are pleased with the progress we are making on our strategic initiatives and on the strong financial results achieved during the quarter,” said Dave and Buster’s CEO, Chris Morris. “During the quarter, we grew Revenue and Adjusted EBITDA, expanded our Adjusted EBITDA margins and generated strong operating cash flow which allowed us to invest in the business and return cash to shareholders. Our fully programmed remodels continue to perform well and we are excited about the remodels that have recently opened and will open throughout the remainder of Fiscal 2024 and beyond.”

Dave and Buster’s reported quarterly net income of $40.3 million or $0.99 per adjusted share. Last year at this time, the company reported net income of $25.9 million or $0.60 per adjusted share.

Dave and Buster’s comparable store sales decreased 6.3% compared to the same time last year. The company’s entertainment segment reported revenue of $375.7 million and food and beverage revenues of $181.4 million for the quarter. The company opened two new Dave & Buster’s stores in the quarter for a total of 224 locations by the end of the second quarter. During the quarter, the company generated $101.8 million in operating cash flow with $481 million of availability in revolving credit.

Dave and Buster’s Entertainment, Inc. (PLAY) shares closed at $32.52, up 4% for the week.

The Kroger Co. Announces Earnings

The Kroger Co. (KR) announced its latest quarterly earnings on Thursday, September 12. The grocery store chain’s shares rose more than 6% after reporting increased sales and earnings for the quarter.

Kroger reported quarterly sales of $33.91 billion in the first quarter. This was up from $33.85 billion reported at this time last year and missed analysts’ estimates by less than 1%. 

“Kroger achieved solid results in the second quarter demonstrating the strength and resiliency of our model,” said Kroger’s CEO, Rodney McMullen. “Our long-term model is to consistently invest to lower prices so more customers shop with us, which in turn fuels our alternative profit businesses and drives greater efficiencies. This flywheel enables Kroger to deliver exceptional value for customers and investing in our associates, and by doing so, we are well-positioned to generate attractive and sustainable returns for shareholders.”

Kroger posted net earnings of $466 million or $0.64 per adjusted share. This was up from a net loss of $180 million or $0.25 per adjusted share at this time last year.

The parent company of Ralphs, Harris Teeter, and Kroger grocery stores reported sales increased 1.3% compared to the same period last year, excluding fuel. Kroger’s digital sales grew 11% and its delivery sales increased 17% in the quarter. The company grew its eCommerce households by 14% and introduced 223 new Our Brands items, their private label assortment. Kroger has reaffirmed its full-year forecast for adjusted net earnings, anticipating a range of $4.30 to $4.50 per share. Additionally, the company updated its guidance for identical sales, excluding fuel, projecting growth between 0.75% and 1.75%.

The Kroger Co. (KR) shares ended the week at $55.91, up 7% for the week.

The Dow started the week of 9/9 at 40,555 and closed at 41,394 on 9/13. The S&P 500 started the week at 5,442 and closed at 5,626. The NASDAQ started the week at 16,836 and closed at 17,684.

U.S. Treasury yields trended lower mid-week as investors digested the latest economic data reflecting cooling inflation for consumer goods. Yields fell slightly at the end of the week as the jobless claims report suggested a softening of the labor market.

On Wednesday, the U.S. Bureau of Labor Statistics announced that the consumer price index (CPI), which measures the cost of dozens of everyday consumer goods, increased 0.2% in August, in line with economists’ forecast. The CPI year-over-year fell to 2.5%, its lowest level since February 2021 and slightly below economists’ projections of 2.6%.

“This is not the CPI report the market wanted to see,” said chief global strategist at Principal Asset Management, Seema Shah. “With core inflation coming in higher than expected, the Fed’s path to a 50 basis point cut has become more complicated.”

The benchmark 10-year Treasury note yield opened the week of September 9 at 3.71% and traded as low as 3.61% on Wednesday. The 30-year Treasury bond opened the week at 4.02% and traded as low as 3.92% on Wednesday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment increased by 2,000 to 230,000 for the week ended September 7. Continuing unemployment claims decreased by 5,000, reaching 1.85 million.

“Employers are holding fast on keeping employees, preferring to cut hours to reduce labor costs, if needed,” said corporate economist at Navy Federal Credit Union, Robert Frick.

The 10-year Treasury note yield finished the week of 9/9 at 3.66%, while the 30-year Treasury note yield finished the week at 3.98%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, September 12. The survey showed mortgage rates dropping to their lowest level since early 2023.

This week, the 30-year fixed rate mortgage averaged 6.20%, down from last week’s average of 6.35%. Last year at this time, the 30-year fixed rate mortgage averaged 7.18%.

The 15-year fixed rate mortgage averaged 5.27% this week, down from last week’s 5.47%. During the same week last year, the 15-year fixed rate mortgage averaged 6.51%.

“Mortgage rates have fallen more than half a percent over the last six weeks and are at their lowest level since February 2023,” said Freddie Mac’s Chief Economist, Sam Khater. “Rates continue to soften due to incoming economic data that is more sedate. But despite the improving mortgage rate environment, prospective buyers remain on the sidelines, as they negotiate a combination of high house prices and persistent supply shortages.”

Based on published national averages, the savings rate was 0.46% as of 8/19. The one-year CD averaged 1.85%.