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.
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