Cisco (CSCO) Stock Jumps 4% on Q4 Beat
Cisco Systems (NASDAQ: CSCO) shares were trading more than 4% after-hours following the company’s reported Q2 results, with EPS coming in at $0.84, beating the consensus estimate of $0.81. Revenue grew 6% year-over-year to $12.7 billion, compared to the consensus estimate of $12.65 billion.
Product revenue grew 9%, led by growth in Secure, Agile Networks - up 7%, Internet for the Future - up 42%, End-to-End Security - up 7%, and Optimized Application Experiences - up 12%, while Hybrid Work was down 9%. Service revenue declined by 1%.
Total Annualized Recurring Revenue (ARR) was $21.9 billion, up 11% year-over-year.
The company increased its dividend by 3% to $0.38 per common share. Furthermore, the Board of Directors approved an additional $15 billion stock repurchase program, bringing its total authorized amount for stock repurchases to $18 billion.
The company expects Q3/22 EPS in the range of $0.85-$0.87, compared to the consensus estimate of $0.86, and revenue growth of 3-5% year-over-year. For the full 2022-year, the company expects EPS of $3.41-$3.46, compared to the consensus estimate of $3.42, and revenue of 5.5-6.5% year-over-year.