NEW YORK (TheStreet) -- Oracle (ORCL) was falling 2.5% to $40.50 in after-market trading on Thursday after announcing that Larry Ellison will step down as CEO, and missing analysts' estimates for earnings and revenue in the fiscal first quarter.
Ellison, co-founder of Oracle, will step down as CEO and become the software company's executive chairman and CTO. Co-presidents Safra Cats and Mark Hurd were named as new CEOs of the company.
For the fiscal first quarter Oracle reported earnings of 62 cents a share, missing the 64 cents a share analysts surveyed by FactSet expected. Revenue grew 2.6% year over year to $8.6 billion for the quarter, compared to analysts' expectations of $8.8 billion.
In addition, the company declared its quarterly dividend of 12 cents a share, which is paid to shareholders as of the close of business on Oct. 8, 2014, and is payable on Oct. 29, 2014.
Oracle also announced it would add an additional $13 billion to its buyback program.
TheStreet's Gregg Greenberg has more on the managament changes at Oracle as well as the company's latest quarterly results:
TheStreet Ratings team rates ORACLE CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate ORACLE CORP (ORCL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."