Cisco Systems (CSCO) shares jumped late Wednesday after the computer networking giant delivered a $25 billion stock buyback, fiscal second-quarter earnings and revenue that topped views, and March quarter guidance coming in above expectations.
X Including the new $25 billion buyback, Cisco now has $31 billion authorized for share repurchases.
Cisco has been expected to ramp up share repurchases in light of a new tax law that allows U.S. companies to bring back cash held overseas at a lower tax rate. With over $60 billion in cash overseas, though, Cisco still has plenty ammunition for acquisitions.
The company has stepped up acquisitions to speed up its shift to software and services from its core business of selling network switches and routers.
Cisco said that adjusted earnings were 63 cents a share, up 10% from a year ago, with revenue rising 3% to $11.9 billion, topping consensus estimates. A year earlier, Cisco Systems earned 57 cents a share on sales of $11.58 billion.
Analysts expected Cisco Systems to report earnings of 59 cents on sales of $11.82 billion for the period ended Dec. 31.
"We had a great quarter which demonstrates that our strategy is working," Chief Executive Chuck Robbins said in a press release. "Our business is growing, we have a fantastic innovation pipeline, our balance sheet is strong and we have a team that's executing incredibly well."
For the March quarter, Cisco forecast revenue growth of 3% to 5% vs. analyst estimates of 2% growth to $12.2 billion. Cisco said it expects adjusted profit of 65 cents vs. estimates of 62 cents.
Shares in the maker of computer networking and software services provider surged 5.5% to 44.40 in after-hours trading in the stock market today.
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