Oracle’s Q1 Profit, Q2 Forecast Beat View (ORCL)

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Enterprise software giant Oracle Corporation ( ORCL ) on Friday posted a 20% jump in fiscal first quarter profit, beating analyst estimates and sending its shares higher in premarket trading.

The Redwood City, CA-based company reported fiscal first quarter net income of $1.35 billion, or 27 cents per share, compared with $1.12 billion, or 22 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 42 cents per share.

Revenue surged 50% from last year to $7.6 billion on a non-GAAP basis.

On average, Wall Street analysts expected a smaller adjusted profit of 37 cents per share, on lower revenue of $7.27 billion.

Looking ahead, the company forecast second quarter non-GAAP earnings per share of 45 to 47 cents per share, which could meet or exceed analysts' expectations of 45 cents.

Oracle shares rose 94 cents, or +3.7%, in premarket trading Friday.

The Bottom Line
We had removed shares of ORCL from our recommended list back on May 4, when the stock was trading at $26.01. Shares of ORCL have a .79% dividend yield, based on last night's closing stock price of $25.36. The stock has technical support in the $22-$23 price area. If the shares can firm up, we see overhead resistance around the $27-$29 price levels. We would remain on the sidelines for now.

Oracle Corporation ( ORCL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



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

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