Oracle beats earnings estimates

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Oracle Corp. ( ORCL ), one of the world's largest software makers, posted solid gains yesterday and this morning as it released its fourth-quarter earnings . At 60 cents per share, Oracle outperformed analysts' estimates of 54 cents per share.

Strong revenue growth helped boost the company's shares from a closing price of $22.22 on Thursday to a peak of $23.21 on Friday morning, although profit-taking pushed back some of those gains early in the day.

Oracle has seen a rapid pace of expansion in the past five years, buying Sun Microsystems, among other 67 companies. The acquisitions have broadened the tech company's portfolio and brought in new customers and new sources of revenue.

The performance of Larry Ellison's company provides a welcome sign that for some businesses, at least, the economy has been strong enough to invest in enterprise software. Oracle's primary product is the Oracle Database suite, which by some estimates holds half of the market share in the relational-database market.

Another promising sign was the company's 14 percent increase in new software sales, another indicator that some companies are investing in expensive, long-term equipment and software and expect some turnaround in their own sales. ADNFCR-1724-ID-19858781-ADNFCR

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance , Technology

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