Cisco gains 5% on another earnings beat, $15 billion added to buybacks
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Cisco Systems (NASDAQ:CSCO) is up 4.7% after hours following its fiscal second-quarter earnings, where it beat earnings per share estimates yet again and edged revenue expectations along with a $15 billion boost to buybacks.
Revenues grew 6% to $12.7 billion, as healthy product sales more than offset a slight dip in services. And double-digit gains overseas drove growth that was only modest in the Americas.
The company meanwhile boosted its dividend by 3% (to $0.38/quarter), and added $15 billion to its repurchase authorization, with no fixed termination date. Including that added amount, the company is authorized to buy back about $18 billion in stock.
It's the third straight quarter where product order growth topped 30%, the company notes. As for business model transformation, it says total annualized recurring revenue was up 11% year-over-year, to $21.9 billion.
In the past two years, Cisco has beaten EPS expectations in every report.
"Our robust order strength, record backlog and double-digit growth in annual recurring revenue position us well to deliver growth," says CEO Chuck Robbins.
Revenue breakout: Product, $9.35 billion (up 9.1%); Service, $3.37 billion (-0.6%).
Revenue by geography: Americas, $7.15 billion (up 3%); EMEA, $3.56 billion (up 11%); APJC, $2.01 billion (up 13%).
Guidance was between in-line to light: It sees the current quarter revenues growing 3-5%, vs. consensus for 3.7% growth, and expects EPS of $0.85-$0.87, vs. consensus for $0.87.
Full-year guidance was in line with expectations: 5.5%-6.5% revenue growth (vs. 5.9% expected) and EPS of $3.41-$3.46 (vs. $3.42).
Conference call to come at 4:30 p.m. ET.