Great news after the closing bell
by Peter Switzer
However, there was great news after the closing bell and it could be a precursor to what we will see after mid-July. And boy, I’m hoping so.
Right now, the US economic readings aren’t as flash as optimists would like and the US consumer and the housing sector have been slow to rebound but some big name US companies have kept the home fires burning for the ‘glass is half-full’ types like Yours Yruly.
Enter Oracle which reported a big boost in profit beating the experts’ expectations. The great result suggests that spending on IT is still healthy and is a nice forward indicator for the overall economy.
Oracle’s earnings came in at 60 cents a share for the quarter and that’s better than analysts’ predictions of around 54 cents a share and last year’s actual result of 46 cents a share.
Importantly, revenue rose 40 per cent to $9.6 billion and so the nice number did not come from cost-cutting, which was the problem last year with many companies that beat expectations.
Look to earnings
The hope is that the upcoming company reporting season in the US will surprise on the high side and the European bank stress tests also prove to be better than expected. If that happens then today’s negativity is a buying opportunity and, frankly, looking at the share prices of some great names and great dividend payers, it’s exactly that!
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Published on: Friday, June 25, 2010blog comments powered by Disqus