Cisco tops earnings expectations, boosts dividend
Cisco posted quarterly results Wednesday that edged past Wall Street expectations and also raised its quarterly dividend.
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The company posted earnings of 47 cents a share excluding one-time items, on sales of $11.16 billion. Analysts expected the networking-equipment giant to post earnings of 46 cents a share on sales of $11.03 billion, according to a consensus estimate from Thomson Reuters.
The company also raised its quarterly dividend by 2 cents a share to 19 cents a share.
Meanwhile, Cisco said it expects to turn in current quarter earnings of between 47 cents a share and 49 cents a share, versus expectations for 48 cents a share. And the company forecasts sales to decline between 6 to 8 percent, against Wall Street estimates of down 7 percent.
Shares turned lower following the guidance update. (Click here for extended-hours quote.)
"We delivered the results we expected this quarter. I'm pleased with the progress we've made managing through the technology transitions of cloud, mobile, security and video," said CEO John Chambers in the company's press release. "Our financials are strong and our strategy is solid. The major market transitions are networking-centric and as the Internet of Everything becomes more important to business, cities and countries, Cisco is uniquely positioned to help our customers solve their biggest business problems."
In November, Cisco estimated sales would fall by as much as 10 percent for the period ended in January, shocking Wall Street analysts who had expected revenue to grow in the quarter. The company also warned it was expecting business to be "challenging" for the next few months.
Also, Chambers said he is likely to stay as the company's head for at least two more years, putting him at the latter end of the range he'd given previously for his expected retirement.
Last week, Cisco and South Korea's Samsung Electronics entered into a patent cross-licensing agreement. Under the agreement, both companies will have access to each other's patent portfolios. The deal covers the two companies' existing patents as well as those filed over the next 10 years.
—By CNBC's JeeYeon Park. Follow her on Twitter @JeeYeonParkCNBC