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.
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