Cisco Systems, Inc. (CSCO) Narrowly Beats Estimates, Shares Slump

Cisco Systems, Inc. (CSCO) Narrowly Beats Estimates, Shares Slump
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Cisco Systems, Inc. (NASDAQ:CSCO) released its latest earnings report after closing bell, revealing earnings per share and revenues that were slightly ahead of estimates. The company posted 47 cents per share in non-GAAP earnings on $11.2 billion in revenue. That’s compared to consensus estimates of 46 cents per share I earnings on $11.03 billion in revenue.

Breaking down Cisco’s results

The company reported profits of $1.4 billion for the quarter or 27 cents per share. Profits in the same quarter a year ago were $3.1 billion or 59 cents per share. Cisco Systems, Inc. (NASDAQ:CSCO) recorded a $655 million pretax charge in connection with remediation of problems with memory components which were used in certain pas products.

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For the first six months of the fiscal 2014 year, the company reported revenue of $23.2 billion. In the same quarter a year ago, Cisco Systems, Inc. (NASDAQ:CSCO) reported revenue of $24 billion for the first six months. Net income for the first six months was 64 cents per share on a GAAP basis and $1 per share on a non-GAAP basis.

“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,” stated chairman and CEO John Chambers in a statement. “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.”

Cisco raises dividend

Cisco Systems, Inc. (NASDAQ:CSCO) also said tonight that it is increasing its quarterly dividend by 3 cents, bringing it up to 19 cents per share. That dividend will be paid On April 23 to shareholders of record as of April 3.

“We had a record quarter of returning $4.9 billion to our shareholders through our quarterly dividend of approximately $900 million and share repurchases of $4.0 billion,” stated Frank Calderoni, executive vice president and chief financial officer of Cisco Systems, Inc. (NASDAQ:CSCO) in a statement. “Our financial strength gives us the confidence to provide a meaningful return to our shareholders, and I’m pleased we are increasing our quarterly dividend by 12 percent to $0.19 per share.”

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