Technology giant and Dow component Cisco Systems (CSCO) has reported earnings after the bell Wednesday, with typically positive results. Cisco posted a modest beat on the bottom line by topping the Zacks consensus estimate of 45 cents per share by 5 cents.
Revenues also generated its fourth straight beat to $11.94 billion. The company also raised its dividend 2 cents per share in Cisco's fiscal Q2 2015 to 21 cents. In the quarter, Cisco returned $2.2 billion in share buybacks to investors.
Services, including cloud-based solutions, as well as gains in bundling seem to have offset weaker foreign exchange issues, as expected. Guidance for future quarters will be provided in the forthcoming conference call with CEO John Chambers, among others, and hot topics appear to be Cisco's advancements in the cloud as well as new initiatives in cybersecurity.
Cisco shares have been trading up more than 18 percent over the past year, and actually entered calendar year 2015 riding near 5-year highs. Shares have pulled back in the past month or so, but this steady earnings report — provided guidance has nothing shocking on the negative side — should help keep Cisco propelled at a sizable valuation. Cisco shares currently carry a Zacks Rank #3 (Hold).
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