Cisco Systems (CSCO) - Get Report shares were rising 2.5% after hours Wednesday following the release of the company's fiscal second quarter earnings results, which outperformed Wall Street's expectations for the period.
The San Jose, CA-based Action Alerts PLUS holding reported December quarter adjusted earnings of 73 cents per share, topping analyst estimates by a penny, while revenue of $12.4 billion was in line with Wall Street guidance.
"We are very pleased with our strong performance in the quarter," said Chuck Robbins, chairman and CEO of Cisco. "Our teams are executing incredibly well, aggressively transitioning to a software model and accelerating our pace of innovation. We are redefining and connecting every domain of the networking infrastructure to deliver the agility, operational efficiency and security our customers require to embrace multicloud, edge computing and digital transformation."
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.
For the current quarter, Cisco expects to earn between 76 cents and 78 cents per share on revenue growth between 4% and 6%. Wall Street was expecting the company to report earnings of 76 cents per share with revenue growth of 3%.
Cisco shares are up 18% over the last year and 12.7% year to date.