Dividend up to a 3.1% yield and revenue up 8% over the year helped CISCO find nearly 5% in extended trading.
CISCO Q2 earnings report appealed to investors as the leader in the Internet of Things [IoT] gained ground in all regions and helped the tech company report above expectation results.
Highlights of CISCO earnings:
10.5% dividend increase taking the quarterly dividend to $0.21 per share to be paid on April 22, 2015.
Earnings of 53 cents a share in Q2, up from 47 cents per share a year earlier.
Revenue up to $11.94 billion from $11.16 billion, a 7% increase.
John Chambers, Cisco chairman and CEO referred to the company being in the sweet spot of leading business outcomes in both countries and companies, particularly in the innovation of the IoT that will connect and deliver efficiency to all processes that can be digitized.
Europe it seems, is gaining ground on the U.S with its digitization programme, with an increase of 20% in Southern Europe and over 6% growth in every segment.
Chambers talks of the CISCO promise to repatriate funds to invest in the U.S by returning overseas money – in fact 50% of its free cash flow every year.
With the best results in three years, CISCO beat analysts’ expectations of earnings of 51 cents per share on $11.8 billion in revenue.
MT4chart: CISCO slight losses on Wednesday prime the stock for market opening.
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