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Cisco Systems' outlook for the current quarter is better than expected by investors and has boosted its share buyback efforts, pushing its shares up close to 4% on Wednesday.
The network equipment company has added an additional $ 15 billion to its stock repurchase programs, thus extending the heavy program of return on investment put in place thanks to the benefits of tax reform in the United States at the end of 2017.
Cisco had already rebounded strongly since the end of last year, prompting some badysts to suggest that the rally had run its course. The slowdown in Cisco's security business and worries about the wider macroeconomic outlook have also led some to warn that the additional gains would be limited.
However, Cisco has indicated that it should generate revenue growth of 4-6% in the current quarter, which will end in late April. That's more than what the company's badysts expected from 3%. He also predicted a pro forma profit of 76 to 78 cents per share, ahead of the 76 cents that badysts had calculated.
Optimistic forecasts were obtained while Cisco broadly met expectations for the three months leading up to the end of January, the second quarter of its fiscal year. Revenues increased 5% to $ 12.4 billion, as expected. Excluding video technology activities that were discontinued in the quarter, Cisco reported underlying growth of 7%.
The company announced earnings per share of 63 cents, compared with a loss of $ 1.78 the previous year. Based on pro forma badysts, earnings reached 73 cents per share, one cent higher than expected. The quarterly dividend was increased by 2%, an increase of 6% over the previous year
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