Cisco shares rise on better-than-expected revenue and earnings
- Cisco beat estimates on the top and bottom lines.
- During the quarter, Cisco announced the acquisition of Luxtera for $660 million and a partnership with Amazon Web Services.
Cisco shares rose in extended trading on Wednesday after the manufacturer of networking equipment reported quarterly revenue and earnings that beat analysts' estimates.
Here are the key numbers for Cisco's fiscal second quarter:
- Earnings: 73 cents per share, excluding certain items, vs. 72 cents per share as expected by analysts, according to Refinitiv.
- Revenue: $12.45 billion, vs. $12.41 billion as expected by analysts, according to Refinitiv.
Revenue increased by about 5 percent from a year earlier in the quarter, which ended on Jan. 26.
Cisco shares have jumped 9.6 percent so far this year, closing on Wednesday at $47.50. The stock rose 3.7 percent to $49.27 after the report.
Cisco's largest business segment, which includes data center switches and routers, came in at $7.13 billion, above the $7.07 billion consensus estimate among analysts polled by FactSet.
Applications revenue, including AppDynamics and WebEx, came in at $1.47 billion, topping the $1.35 billion FactSet consensus estimate. Security revenue was $658 million, beating the $629 million estimate.
Cisco said it expects third-quarter revenue to increase 4 percent to 6 percent and for adjusted earnings to come in at 76 cents to 78 cents a share. Analysts expect profit of forecast 77 cents a share, excluding certain items, according to Refinitiv.
Cisco's board approved a $15 billion increase in the company stock buyback program, bringing the total amount it can repurchase to $24 billion. Cisco also raised its quarterly dividend by 6 percent to 35 cents a share.
In the quarter Cisco announced the acquisition of Luxtera for $660 million and a partnership with Amazon Web Services.
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