Why Cisco Systems Stock Is Down Today
Shares of Cisco Systems (NASDAQ: CSCO) fell as much as 5.5% on Wednesday morning, following the networking equipment giant's second-quarter earnings report. The stock had recovered to a 4% decline as of 11:50 a.m. EST.
Cisco's adjusted second-quarter earnings rose 3% year over year to $0.79 per diluted share. Revenues held steady at $12 billion. Your average analyst would have settled for earnings near $0.76 per share on sales in the vicinity of $11.9 billion, so Cisco exceeded Wall Street's expectations by a small margin.
Looking ahead, Cisco's guidance for the third quarter pointed to earnings of roughly $0.81 per share, right in line with current analyst projections. On the top line, sales should rise approximately 4.5% to $12.5 billion. Here, the Street view currently stops at $12.4 billion. Moreover, the company raised its quarterly dividend by 3% to $0.37 per share. The effective dividend yield is 3.2% at today's share prices.
Source Fool.com
