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Oracle Shares Plunge as Earnings and Forecast Miss Expectations (ORCL)

Enterprise software giant Oracle Corporation ( ORCL ) late Tuesday posted lower-than-expected fiscal second quarter earnings and offered a tepid third quarter forecast, sending its shares plummeting in aftermarket trading.

The Redwood City, CA-based company reported second quarter net income of $2.2 billion, or 43 cents per share, compared with $1.9 billion, or 37 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 54 cents per share.

Revenue rose 2% from last year to $8.8 billion.

On average, Wall Street analysts expected a higher profit of 57 cents per share, on larger revenue of $9.23 billion.

For the current fiscal third quarter, Oracle forecast earnings of 55 to 58 cents per share, which would miss analyst expectations for 59 cents.

Oracle shares fell $2.90, or -10%, in premarket trading Wednesday.

The Bottom Line

Shares of Oracle ( ORCL ) have a .82% dividend yield, based on last night's closing stock price of $29.17. The stock has technical support in the $25-$26 price area. If the shares can firm up, we see overhead resistance around the $32 price level.

Oracle Corporation ( ORCL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 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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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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