Cisco Reports Better-than-expected Earnings, Hikes Dividend And Stock Buyback

Shares of Cisco Systems Inc. gained in Wednesday's extended session after the networking equipment maker reported earnings and announced an increase in its dividend and stock buyback program. Cisco reported its second-quarter earnings rose to $3.1 billion, or 62 cents a share, from $2.4 billion, or 46 cents a share, in the same quarter last year. On an adjusted basis, the tech company would have earned 57 cents a share. Revenue was flat at $11.9 billion but rose to $11.8 billion from $11.6 billion when sales from the SP video CPE unit are excluded. Analysts surveyed by FactSet had forecast earnings of 54 cents a share on revenue of $11.76 billion. Cisco also raised its quarterly dividend by 24% to 26 cents a share and boosted its stock buyback program by $15 billion. In the third quarter, the company expects revenue to grow 1% to 4% year-on-year and adjusted earnings per share in a range of 54 cents to 56 cents. Cisco shares jumped 8.3% in after-hours trading.