Hybrid cloud: Different styles for different enterprise priorities Watch Now Cisco delivered in-line second quarter financial results Wednesday after the bell. The tech giant reported a net income of $2.8 billion, or 63 cents per share. Non-GAAP earnings were 73 cents per share on a revenue of $12.4 billion, up 7 percent year over year. A year ago, Cisco earned 63 cents a share on sales of $11.9 billion. Also: Best Presidents' Day 2019 sales Wall Street was looking for earnings of 72 cents per share with $12.4 billion in revenue. Cisco's shares were up nearly 4 percent after hours. For the current quarter, Wall Street is looking for non-GAAP earnings of 76 cents per share with $12.84 billion in revenue. Cisco responded with a revenue outlook that ranges from a 4 percent to 6 percent increase, with EPS between 76 cents a share and 78 cents a share. Cisco's revenue by segment breaks revenue down in the following categories: infrastructure platforms, applications, security, services and other. Infrastructure platforms revenue was up 6 percent to $7.13 billion; applications revenue was up 24 percent to $1.5 billion; security revenue was up 18 percent to $658 million; and other products revenue was $22 million, down 91 percent. Cisco's board of directors also approved a $15 billion increase to the authorization of the company's stock repurchase program. "We are very pleased with our strong performance in the quarter," said Cisco CEO Chuck Robbins, in a statement. "Our teams are executing incredibly well, aggressively transitioning to a software model and accelerating our pace of innovation."<doc-sep>Chuck Robbins, CEO of Cisco, speaking at the 2019 WEF in Davos, Switzerland on Jan. 23rd, 2019. 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. 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. WATCH: Cisco CEO Chuck Robbins: 25% tariffs can significantly impact our business<doc-sep>Cisco Systems shares traded sharply higher Thursday after the network equipment maker posted better-than-expected second quarter earnings and said growth from its newer business units would continue to drive sales over the near term. Cisco Systems Inc. (CSCO) - Get Report shares traded sharply higher Thursday after the network equipment maker posted better-than-expected second quarter earnings and said growth from its newer business units would continue to drive sales over the near term. Cisco said adjusted non-GAAP earnings for the three months ending in January came in at 73 cents per share, topping the Street consensus forecast by a penny and rising 15.9% from the same period last year. Group revenues, Cisco said, jumped 4.7% to $12.45 billion, and should rise between 4% and 6% over the first three months of this year, the company's fiscal third quarter, as more and more sales are generated by its software and security businesses. The company also said that it continues to compete well in China, the world's largest market, and hasn't yet felt the impact of trade tensions between Washington and Beijing. "I think our portfolio right now from an innovation perspective, and particularly with the work the teams are doing in the SP space and the work that we're doing around the 5G packet core and some of these next generation platforms that are going to hit the market this year, I would put our innovation up against there as anybody else's in the world right now," CEO Chuck Robbins told investors on a conference call late Wednesday. "And so I feel very confident that not only can we compete, but that we are and we're winning right now," he added. "And so the share comment from them could be related to the size of the Chinese market and they're confident that the math works, but in other parts of the world, I'll tell you we're doing really well right now." Action Alerts PLUS holding Cisco shares were marked 4.4% higher Thursday and changing hands at $49.62 in the opening minutes of trading, a move that would extend the Dow component's three-month gain to around 6.4%. Software sales rose 24% to $1.47 billion, the company said, with around 65% of that total coming from subscription sales, indicating the potential for recurring revenue gains in the quarters ahead. Security business revenues rose 18% to $656 million. Separately, the company also announced that its board approved a $15 billion share buyback plan, and that it also increased its quarterly dividend by 6% to 35 cents per share, payable April 24 to shareholders of record on April 5.<doc-sep>
Text size Cisco Systems shares (ticker: CSCO) are higher in after-hours trading Wednesday after networking equipment giant reported fiscal second-quarter earnings that slightly beat Wall Street estimates. The back story. Shares of the San Jose, Calif-based firm are up 10% this year. Analysts are split on the impressive run. “Although Cisco is steadily executing on the Security opportunity we think the current pace is unlikely to offset deceleration in the traditional hardware cycle,” Morgan Stanley analyst James Faucette said in a note Tuesday. He downgraded the stock to an Equal Weight rating from Overweight and trimmed his price target to $49 from $51. Shares closed Wednesday at $47.50 On Monday, Raymond James’s Simon Leopold, said he expects Cisco can still benefit even in a world moving toward the cloud and away from on-premise technology equipment. Cisco “can succeed in a hybrid, or multi-cloud world,” Leopold wrote. The numbers. Late Wednesday, Cisco reported a fiscal second-quarter profit of 73 cents a share, edging the consensus forecast of 72 cents per share by a group of analysts polled by FactSet. Revenue of $12.45 billion beat FactSet’s estimate of $12.42 billion. (In the same quarter a year ago, Cisco reported earnings of 63 cents per share on a 3% rise in revenue, to $11.9 billion.) Cisco forecast third-quarter earnings of 76 to 78 cents per share, eclipsing the 76 cents per share expected from Wall Street. The company also hiked its dividend 6%, while increasing its buyback plan by $15 billion. “We are very pleased with our strong performance in the quarter. Our teams are executing incredibly well, aggressively transitioning to a software model and accelerating our pace of innovation,” Cisco CEO Chuck Robbins said in a statement announcing the results. Looking ahead. Cisco shares are up 3% in after-hours trading. The company is holding a conference call with analysts at 4:30 p.m. ET Wednesday. Cisco is in the middle of about 500 layoffs as part of a restructuring in Robbins’ massive overhaul of the company’s business model from hardware to software and subscriptions. Expect to hear more about that transition during the company’s call today.