Cisco Systems (CSCO) late Wednesday reported fiscal second-quarter earnings and revenue that edged analyst estimates. The Cisco earnings report helped the stock climb past a buy point, as did April quarter guidance that topped expectations.
XCisco upped its quarterly dividend to 35 cents a share, from 33 cents a share. At the new rate, the annualized dividend yield is nearly 3%. The company also added $15 billion to its share buyback program. Its total share repurchase authorization now stands at $24 billion.
The company said adjusted earnings were 73 cents a share, up 16% from a year earlier, with revenue rising 4.2% to $12.45 billion. A year earlier, Cisco earnings were 63 cents a share on sales of $11.89 billion.
Analysts expected Cisco earnings of 72 cents on sales of $12.41 billion for the period ended Jan. 30.
Cisco stock rose 4.5% to 49.62 early on the stock market today. In Wednesday's regular session, Cisco stock slipped 0.8%. Cisco stock broke out of a double-bottom base with 49.24 buy point.
Cisco Revenue Outlook Tops Views
For the April quarter, Cisco forecast revenue growth in a range of 4% to 6%. Analysts had projected $12.84 billion in revenue, up 3%.
The company said it expects adjusted profit of 77 cents at its midpoint of guidance. Analysts had estimated 76 cents.
Cisco has been shifting away from its core business of selling network switches and routers. With acquisitions, Cisco has aimed to increase revenue from software and services.
In the second quarter, analysts expected sales of new Catalyst 9000 network switches to be a bright spot.
