Oracle Corporation (NYSE: ORCL)
Oracle Corporation is having an incredibly strong day in the market today, and for good reason. The company reported earnings yesterday after the closing bell, blowing away expectations and exciting investors. Today, we'll take a look at what we saw from earnings, how the market reacted to the news, and what we can expect to see from ORCL moving forward. So, let's get right to it...
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Oracle Produces Solid Earnings
As mentioned above, ORCL reported its earnings for Q3 after the closing bell yesterday as expected. However the company surprised investors, not only by blowing away earnings estimates, but also by declaring a dividend and announcing the repurchase of common stock. Here's what we saw:
- Earnings Per Share – In terms of earnings per share, it was expected that ORCL would generated $0.62 in the quarter. However, the company actually generated earnings in the amount of $0.64 per share, beating analyst expectations by $0.02 per share.
- Revenue – When it comes to revenue, ORCL produced a slight miss. In the quarter, analysts expected for the company to generate revenue in the amount of $9.12 billion. However, Oracle was able to generate $9 billion even in the quarter.
- Declaration Of Cash Dividend – On top of the strong earnings, the company also made a big declaration today. ORCL will start paying dividends in the amount of $0.15 per share. The dividend will be paid to stockholders on record as of the close of business on April 14th and will be paid to stockholders on April 28th, 2016.
- Stock Repurchasing – Finally, ORCL showed its strength and confidence in long-term growth by announcing that the Board of Directors has authorized a large common stock repurchase plan. The company will be repurchasing up to an additional $10 billion of common stock under its existing share repurchase program in quarters to come.
How The Market Reacted To The News
As investors, we know that the news moves the market. Ultimately, there are few pieces of news that have the ability to move the market like strong earnings, dividends, and stock repurchases. ORCL happened to release all three of these at once. So, it only makes sense that we're seeing big gains on Oracle's stock today. Currently (11:07), the stock is trading at $40.41 per share after a gain of $1.67 per share or 4.31% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Oracle. The company, which is focused on online software, has an incredible line of products for which demand is very high. Proof of this can be seen by simply taking a look at the ORCL earnings report. Having great products is one thing, but having the ability to market those products is another. However, ORCL has an incredible team, both in management and as employees. All in all, everything is pointing to strong, long-term growth from ORCL.
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What Do You Think?
Where do you think ORCL is headed moving forward and why? Let us know your opinion in the comments below!
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