Cisco earnings: 57 cents vs expected EPS of 56 cents

Cisco volatile after hours
Cisco volatile after hours

Cisco shares dipped after the company gave gloomy revenue guidance for the current quarter.

For the fiscal third quarter, Cisco said its revenue could decline as much as 2 percent year over year. The company reported revenue of $12 billion in the comparable year-ago period.

The forecast for revenue between flat and 2 percent lower year over year is still slightly better than the 1.2 percent decline analysts had projected, according to a Thomson Reuters consensus estimate.

Cisco said it expects third-quarter earnings per share between 57 cents and 59 cents. That range is in line with analyst expectations for 58 cents, according to a Thomson Reuters consensus estimate.

The stock initially dipped 1 percent in after-hours trade, but later reversed to trade more than 1 percent higher.

The company, however, reported second-quarter earnings and revenue on Wednesday that beat analysts expectations.

The company reported second-quarter earnings of 57 cents per share on $11.58 billion in revenue. Revenue declined 2 percent from the $11.93 billion reported in the comparable year-ago period.

Analysts expected Cisco to report earnings of 56 cents per share, adjusted, on revenue of $11.56 billion, according to a Thomson Reuters consensus estimate.

"We are pleased with the quarter and the continued customer momentum as we help them drive security, automation and intelligence across the network and into the cloud," said CEO Chuck Robbins said in a statement.

Cisco also raised its quarterly dividend to 29 cents per share, a 3-cent increase from the previous quarter's dividend.

CFO Kelly Kramer said the company expects to "continue to execute well and return value to our shareholders."

"I am pleased with our progress on business transformation to software and recurring revenues," Kramer said in a Wednesday statement.

In January, the San Jose, Calif.- based company agreed to acquire AppDynamics for $3.7 billion, marking its biggest acquisition since 2012. In its Wednesday statement, Cisco said it expects the deal to close in the fiscal third quarter.

The global networking company announced last August it would cut 5,500 jobs, or 7 percent of its global workforce, starting in 2017, as it restructures to focus on key priority areas such as security, internet of things, collaboration and cloud services.

Robbins said last month he expects the new presidential administration to be good for dividends, mergers, buybacks and job creation.

— CNBC's Anita Balakrishnan contributed to this report.

Cisco Systems beats on top & bottom
Cisco Systems beats on top & bottom