Oracle's profits were slightly down to $1.33 billion (26 cents a share) from $1.34 billion. Excluding special items earnings would have been 35 cents a share compared to a 31 cent consensus estimate. A strong dollar hurt earnings by 5 cents per share as a considerable amount of Oracle's business takes place overseas. New software licenses decline of 6% was anticipated due to the weak economy. Cutting costs, increasing margins, and preexisting service contracts allowed Oracle to beat estimates. ORCL also announced a 5 cent/share dividend approximately 3.25% of yesterdays close.
ORCL was up 14% as of 1:30PM and it is reasonable to believe these gains with hold. New software licenses will continue to decrease into Q4. But a weakening dollar and service contracts should help their bottom line.