Cisco Systems Inc. (NASDAQ: CSCO) reported its second quarter financial results and analysts’ estimates in both earnings and revenue. Shares rose by 7 percent during Thursday’s pre-market hours.
For the fourth quarter, Cisco reported revenue of $11.9 billion, increasing 3 percent year over year, and beating analysts’ estimates of $11.81 billion. The company reported EPS of $0.63, increasing 11 percent year over year, and beating analysts’ estimates of $0.59.
On a GAAP-basis, Cisco reported a net loss per share of $1.78, resulting from an $11.1 billion one time charge from the Tax Cuts and Jobs Act.
Americas revenue increased by 5 percent, while Asia Pacific fell by 2 percent year over year. Recurring offers accounted for 33 percent of total revenue, increasing 2 percentage points year over year.
Infrastructure platforms, Cisco’s biggest revenue segment, reported revenue of $6.69 billion, increasing 2 percent year over year. Product revenue increased by 6 percent year over year, showing strong growth in Applications and Security.
“We had a great quarter which demonstrates that our strategy is working. Our business is growing, we have a fantastic innovation pipeline, our balance sheet is strong and we have a team that’s executing incredibly well,” said Chuck Robbins, Chairman and CEO, Cisco.
“The network is more critical to business success than ever, and our new intent-based networking portfolio has great momentum including the fastest ramping new product in our history.” added Robbins.
Cisco is bringing back approximately $67 billion in earnings from overseas or $57 billion after taxes. The company will repatriate its earnings due to the new tax reform.
Cisco CFO Kelly Kramer said in the company’s conference call that it will set aside for a $25 billion share repurchase and $13 billion quarterly cash dividend, or a 14 percent increase per common share to $0.33. Kramer also said repatriated money will be used to fund acquisitions.
For the third quarter, Cisco forecasts revenue to grow 3 to 5 percent year over year and an EPS of $0.64 to $0.66. The acquisition of Broadsoft is factored in to the company’s guidance. Analysts’ are projecting revenue of $12.13 billion and an EPS of $0.63.