Oracle has exceeded market expectations. Shares rose 96 cents, or more than 3 percent, to US$28.08 in after-hours trading on Monday.
Oracle reported financial results late Monday that exceeded Wall Street’s expectations and said it would buy back up to $10 billion of its shares. But the bigger surprise was the timing of the company’s announcement; the numbers were not expected to be released until Thursday.
Safra Catz, Oracle’s chief financial officer, told analysts in a hastily scheduled conference call that the company did not think investors would mind hearing about a solid quarter amid unsettling fears about how Europe’s shaky economy might be affecting business conditions.
It was still a puzzling decision, given that the announcement conflicted with an event in Los Angeles held by Microsoft to unveil a tablet computer to compete against Apple’s iPad. The overlap meant that some of the securities analysts who follow Oracle were focused on the Microsoft announcement.
For its fiscal fourth quarter, Oracle reported an 8 percent increase in net income that topped analysts’ predictions. Oracle also posted a 7 percent gain in its sales of new software licenses, indicating that there was still strong demand for technology that helps businesses automate administrative tasks.
SOURCE: The New York Times, Wednesday, June 20th, 2012 9:54 AM ET (USA)