Oracle’s Q4 Profit Jumps 25%, Beating View (ORCL)

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Enterprise software giant Oracle Corporation ( ORCL ) late Thursday said its fiscal fourth quarter profit rose 25% from last year, beating analyst estimates and sending its shares higher.

The Redwood City, CA-based company reported fourth quarter net income of $2.4 billion, or 46 cents per share, compared with $1.9 billion, or 38 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 60 cents per share.

Revenue surged 39% from last year, to $9.5 billion.

On average, Wall Street analysts expected a smaller adjusted profit of 54 cents per share, on matching revenue of $9.5 billion.

For the current fiscal first quarter, the company predicted adjusted earnings of 35 to 37 cents per share, which straddles the average analyst estimate for 36 cents.

Oracle shares rose 83 cents, or +3.7%, in premarket trading Friday.

The Bottom Line
We recently removed shares of ORCL from our recommended list on May 4, when the stock was trading at $26.01. The company has a .90% dividend yield, based on last night's closing stock price of $22.22. The stock has technical support in the $20-$21 price area. If the shares can firm up, we see overhead resistance around the $25-$26 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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