Cisco Tops Quarterly Expectations, Raises Dividend

Shares of Cisco Systems Inc. climbed 1.5% in after-hours trade Wednesday after the company reported a stronger-than-expected 70% increase in earnings and higher sales for the fourth quarter. The chip manufacturer reported net income of $2.4 billion, or 46 cents a share, compared with a year-earlier profit of $1.4 billion, or 27 cents. Adjusted for one-time items, Cisco said it earned 53 cents, topping the 51-cent estimate analysts were calling for in a FactSet poll. Revenue for the three-month period grew 7% to $11.9 billion from $11.2 billion last year, compared with the $11.8 billion consensus estimate. Both product and service revenues improved during the quarter. The company also said it was raising its quarterly cash dividend by two pennies to 21 cents a share. The company will provide an outlook on its conference call at 4:30 ET.