After-Hours Action: Why Oracle Stock Is Surging

Oracle Corp ORCL shares are trading higher in Monday's after-hours session after the company announced better-than-expected financial results.

Oracle said fiscal fourth-quarter revenue increased 5% year-over-year to $11.8 billion, which beat the estimate of $11.67 billion, according to data from Benzinga Pro. The company reported quarterly adjusted earnings of $1.54 per share, which beat the estimate of $1.37 per share.

Oracle said its revenue growth is typically driven by its Fusion and NetSuite cloud applications, but in the fourth quarter, the company received a "major increase" in demand for its infrastructure cloud business. 

"We believe that this revenue growth spike indicates that our infrastructure business has now entered a hyper-growth phase," said Safra Catz, CEO of Oracle.

Oracle's board also declared a quarterly cash dividend of 32 cents per share. The dividend will be paid on July 26 to shareholders of record as of the close of business on July 12.
ORCL Price Action: Oracle hit 52-week lows ahead of its earnings report Monday.

The stock was up 9.26% in after hours at $70.00 at press time.

Photo: courtesy of Oracle.