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Cisco Systems Inc. shares declined in the extended session Tuesday after the maker of network services, videoconferencing tools and security software’s quarterly results topped Wall Street estimates, but sales in certain segments came in below expectations.
Cisco CSCO, -0.90% shares shed more than 5% after hours, following a 0.9% decline in the regular session to close at $48.50.
The company reported fiscal second-quarter net income of $2.55 billion, or 60 cents a share, compared with $2.88 billion, or 68 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 79 cents a share, compared with 77 cents a share in the year-ago period.
Revenue slipped to $11.96 billion from $12.01 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast 76 cents a share on revenue of $11.92 billion.
Narrower-than-feared losses in the company’s infrastructure segment, however, made up for shortfalls in other segments when it came to Wall Street expectations.
For the second quarter, infrastructure sales declined 3% to $6.39 billion and applications sales were flat at $1.35 billion, while security sales rose 10% to $822 million from the year-ago period. Analysts had forecast infrastructure sales of $6.23 billion, applications sales of $1.4 billion and security sales of $833.4 million. Services revenue rose 2% to $3.39 billion, while analysts expected $3.41 billion.
Cisco forecast third-quarter earnings of 80 cents to 82 cents a share on a 3.5% to 5.5% year-over-year increase in revenue, or a range between $12.38 billion and $12.68 billion. Analysts estimate 81 cents a share on revenue of $12.35 billion.
The company also said its board raised the quarterly dividend by a penny to 37 cents a share, which will be paid April 28 to shareholders of record as of April 6.
Over the past 12 months, Cisco shares are up 1% as of Tuesday’s close, compared with an 8% advance by the Dow Jones Industrial Average DJIA, -0.03%, of which Cisco is a component, an 18% rise by the S&P 500 index SPX, -0.11%, and a 47% gain by the tech-heavy Nasdaq Composite Index COMP, +0.14%.
