Cisco Systems (CSCO) late Wednesday reported fiscal second quarter earnings based on revenue just shy of analyst estimates. The Cisco Earnings Report helped the stock climb in after-hours trading, as did April Quarterly Guidance that Capped Expectations.
The company also added $ 15 billion to its share buyback program. Its total share repurchase authorization now stands at $ 24 trillion.
The company said adjusted earnings were 73 cents a share, up 16% from a year earlier, with revenue rising 4.2% to $ 12.4 billion. A year earlier, Cisco earnings were 63 cents on sales of $ 11.89 billion.
Analysts expected Cisco earnings of 72 cents on sales or $ 12.41 billion for the period ended January. 30.
Cisco stock rose 3.2% to 49.03 in after-hours trading on the stock market today. In Wednesday's regular session, Cisco stock slipped 0.8%. Cisco stock is up 16% from a year ago.
Cisco Revenue Outlook Tops Views
For the April quarter, Cisco forecast revenue growth in a range of 4% to 6%. Analysts had projected $ 12.84 billion in revenue, up 3%.
The company said it expects adjusted profit of 77 cents at its midpoint of guidance. Analysts had estimated 76 cents.
Cisco has been shifting away from its core business of selling network switches and routers. With acquisitions, Cisco has aimed to increase revenue from software and services.
In the second quarter, analysts expected sales of new Catalyst 9000 network switches to be a bright spot.
Shares in Cisco were trading about 3% below and entry point of 49.24 ahead of the earnings release. Cisco stock has formed a double-bottom chart pattern over four months.