Cisco Systems, Inc. (NASDAQ:CSCO) has recently released quarterly earnings and revenue that came in ahead of analysts’ estimates as job cuts helped reduce costs and price cuts attracted customers.
The biggest maker of computer-networking equipment posted adjusted profit of 47 cents a share in the period ended July 28, higher from the average estimate of 46 cents, according to data tracked by Bloomberg. Sales advanced 4.4 percent to $11.7 billion, compared with Wall Street estimates for $11.6 billion.
After adding last month’s takeover of NDS Group Ltd., which makes software that powers cable set-top boxes and delivers video, the company anticipate net income in a range of 45 cents to 47 cents a share in the current quarter, as compared to the mean forecast of 46 cents. Sales are expected to move up between 4 percent and 6 percent when compared with a year earlier, which translates revenue of $11.6 billion to $11.9 billion. Analysts projected $11.7 billion in revenue.
The San Jose, California-based company also announced a raise in its dividend to 14 cents a share, starting this quarter, from 8 cents a share. Chief Financial Officer Frank Calderoni said the tech giant plans to return at least half of the cash generated from operations using dividends and share repurchases.
Chief Executive Officer John Chambers has reduced 7,800 workers, closed units and cut prices to regain business lost to Juniper Networks, Inc. (NYSE:JNPR) and Hewlett-Packard Company (NYSE:HPQ) and battle a European economic slump, which makes up a fifth of revenue. Last month, Juniper Networks reported profit and sales came in ahead of the company’s pessimistic April guidance.
Another strong competitor Hewlett-Packard (NYSE:HPQ) is scheduled to release its third quarter earnings on Wednesday, August 22, 2012. Analysts have turned out to be ever more bullish on the company in the last month, with consensus earnings per share forecast raised from 97 cents a share to the current profit forecast of 99 cents a share.
The average expectation has declined from $1.02 in the last 90 days. For the fiscal year, earnings of $4.06 per share are projected. Analysts anticipate revenue for the quarter will be $30.15 billion, down by 3.3% as compared to last year’s figure of $31.19 billion. For the full-year revenue is expected to come in at $122.61 billion.
Looking at past performance of the company, revenue-decline has been reported in last three quarters. It lost 3% to $30.69 billion in the second quarter. Before that, the amount fell 7% in the first quarter and 3.5% in the last three months of the last fiscal year. The company’s closest rival in the computer hardware industry is Apple Inc. (NASDAQ:AAPL).