Oracle Approves Second $12 Billion Stock Buyback Authorization in as Many Months
By Maria Armental
Oracle Corp. said Friday it will add $12 billion to its stock buyback program, a move that comes less than two months after its board expanded the program by the same amount.
The authorization announced on Friday doesn't have an expiration date, giving the company leeway as to when to retire its stock.
A company spokeswoman declined comment on the amount of money the company currently has available for buybacks.
Oracle said in December that as of Nov. 30 it had $2.8 billion left on its share repurchase authorization.
Companies generally use buybacks to make shares more attractive to investors as the lower share count typically boosts per-share earnings.
Through Nov. 30, Oracle reported a profit of $1.04 a share for the first half of its business year, compared with 92 cents a share in the year ago period.
Oracle's stock took a beating following the December release of its second-quarter results, when the business-software maker forecast lower-than-expected revenue growth for the current quarter in its cloud-computing business.
Still, shares are up 25% over the past 12 months, and Oracle's market valuation stood at roughly $207.52 billion as of Friday's close.
Shares were flat in after-hours trading Friday at $50.13.
Oracle, which has among the largest overseas cash piles in the technology sector, has yet to release how recent changes in U.S. tax law will affect its business. As of Nov. 30, Oracle held $58.5 billion in cash overseas.
Write to Maria Armental at firstname.lastname@example.org
(END) Dow Jones Newswires
February 02, 2018 18:04 ET (23:04 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.