Cisco Beats Wall Street, Hikes Dividend

This story has been updated with information on conference call comments, business segment information and share price.

NEW YORK (TheStreet) - Cisco (CSCO) beat Wall Street's top and bottom line estimates in its second-quarter results, released after market close, and hiked its quarterly dividend to 19 cents a share.

The San Jose, Calif.-based firm reported revenue of $11.2 billion, down from $12.1 billion in the prior year's quarter, but above analysts' estimate of $11.03 billion.

Excluding items, Cisco earned 47 cents a share on net income of $2.5 billion, down from 51 cents a share and net income of $2.7 billion in the same period last year. Analysts surveyed by Thomson Reuters were looking for earnings of 46 cents a share.

"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," said Cisco CEO John Chambers, in the company's statement. "Our financials are strong and our strategy is solid."

Cisco's cash flows from operations were $2.9 billion during the quarter, up from $2.6 billion in the first quarter, but down from $3.3 billion in the same period last year. The company's non-GAAP gross margin was 61.3%.

Cisco's switching revenue declined 12% year over year to $3.27 billion, while Next-Generation Routing (NGN) was down 11% to $1.74 billion. The company's service revenue, however, increased 3% year over year to $2.73 billion, while security sales grew 17% to $393 million.

The networking giant's board also approved a two cent-increase in the firm's quarterly dividend, hiking it from 17 cents a share to 19 cents a share.

If you liked this article you might like

7 Essential Rules for Investing in Tech Stocks

Hewlett Packard Enterprise Becomes the Latest Tech Titan to Slash Jobs

Tax Reform Is Coming and That Means Trump Stock Rally Is Ready to Kill It Again

'Trump Stock' Rally Is Back on Track

These Stocks Pay You to Own Them