Oracle has announced that it expects its full-year revenue to range between $782 million and $790 million, falling short of analysts' estimates of $803.5 million. Despite the lower-than-expected revenue forecast, Oracle has decided to raise its quarterly dividend by 25% to 50 cents per share, up from the previous 40 cents per share. This increase in the dividend, which amounts to a 10-cent rise per share, has been received positively by investors.
Oracle's fiscal third-quarter results did not meet Wall Street's expectations concerning both revenue and earnings. However, the company's cloud computing stock managed to gain 3%, indicating investor confidence in Oracle's long-term growth strategy.
The decision to increase the quarterly dividend demonstrates Oracle's commitment to returning value to its shareholders. The new dividend of 50 cents per share represents a 25% increase from the previous quarterly dividend of 40 cents per share. This move is seen as a strategic step to strengthen investor relations and maintain shareholder satisfaction amid revenue concerns.
The tech giant's latest financial update comes at a time when economic uncertainties are impacting consumer and corporate confidence across various sectors. The increase in dividend payouts may help bolster Oracle's reputation as a reliable investment despite the challenges it faces in meeting growth expectations.
Leave a Reply