Oracle’s Q3 Earnings Beat View as Sales Jump 37%; Dividend Boosted (ORCL)

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Enterprise software giant Oracle Corporation ( ORCL ) late Thursday said its third quarter profit jumped substantially from last year, beating analyst expectations and sending its shares higher in aftermarket trading.

The Redwood City, CA-based company reported third quarter net income of $2.1 billion, or 41 cents per share, compared with $1.19 billion, or 23 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 54 cents per share.

Revenue jumped 37% from last year to $8.76 billion.

On average, Wall Street analysts expected a smaller profit of 50 cents per share on slightly lower revenue of $8.7 billion.

Looking ahead, the company forecast fourth quarter earnings to range from 69 to 73 cents per share, which would best analyst expectations of 66 cents. Oracle also announced a 20% raise in its quarterly dividend payout, from 5 cents to 6 cents per share.

Oracle shares rose $1.39, or +4.3%, in premarket trading Friday.

The Bottom Line
Shares of Oracle ( ORCL ) have a .75% dividend yield, based on last night's closing stock price of $32.14. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $33-$36 price levels.

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 Nasdaq, Inc.

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