Two Ways: Oracle Calls for Bright Future
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Jeff Epstein, Oracle's chief financial officer, said the company "executed substantially better than we expected on both the top and bottom line for the quarter… We grew Q4 non-GAAP operating margins by a faster-than-expected 240 basis points to over 51%. That helped us generate $7.7 billion in free cash flow for fiscal 2009."
Although fiscal 2009 earnings were up 3% in 2009, to $1.09 a share, the firm was hurt by a weaker dollar, which reduced EPS by $0.11 per share. Annual non-GAAP revenues were still up 4%, to $23.5 billion, due in part to a strong performance in its Exadata Database Machine, which CEO Larry Ellison said was "well on its way to being the most successful new product launch in Oracle's 30-year history."
Shares rose nearly 2.5% in after-hours trading.
From the Bull Pen: Oracle is definitely an option if you favor these big-cap tech plays. Near-term sell stops can be set below $19.50 support.
From the Bear Cave: In tech, bears can look to Baidu (BIDU). Consider playing the downside if you think this stock has more room to correct. Watch if the stock rallies back and fails at $280-282 -- remember to set a tight buy stop above that level.
It's time to share an Abita with my former teammate Minyan B.Hocke. Have a great night!
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