Cisco Systems (CSCO) reported on Wednesday's second-quarter fiscal results, which narrowed estimates to near analyst estimates. The Cisco earnings report helped the stock climb in after-hours trading, and the April forecast for the quarter exceeded expectations.
Cisco raised its quarterly dividend to 35 cents a share, from 33 cents a share. The company has also increased its share repurchase program by $ 15 billion. The total entitlement to buy back shares is now $ 24 billion.
The company said that adjusted earnings were 73 cents a share, up 16% over the previous year. Sales increased 4.2% to $ 12.4 billion. A year earlier, Cisco's revenue of $ 11.89 billion was 63 cents a share.
Analysts expected a 72-cents Cisco profit on January 30, with sales of $ 12.41 billion.
The Cisco share rose in the stock exchange today by 3.2% to 49.03. In the regular session on Wednesday, the Cisco share fell 0.8%. Cisco shares increased 16% year-over-year.
Cisco Revenue Outlook outperforms the views
For the April quarter, Cisco predicted sales growth of between 4% and 6%. Analysts had expected sales of $ 12.84 billion, an increase of 3%.
The company expects it to reach an adjusted profit of 77 cents by the middle of the guidance. Analysts had estimated 76 cents.
Cisco has moved away from the core business of distributing network switches and routers. Cisco's goal with the acquisitions was to increase sales of software and services.
In the second quarter, analysts expected sales of new Catalyst 9000 network switches.
Shares in Cisco were approximately 3% below an entry point of 49.24 prior to the release of the results. The Cisco stock has become a double-bottom chart over the past four months.