Cisco Systems Inc. said Wednesday that earnings jumped 56 percent in the latest quarter compared with last year, when it was in the throes of a restructuring program.
The results beat expectations, and Cisco rewarded investors by raising its dividend by 75 percent. The new quarterly dividend of 14 cents per share represents an annual yield of 3.2 percent of Cisco's stock price, a relatively high yield for a technology company.
Cisco said it earned $1.9 billion, or 36 cents per share, in its fiscal fourth quarter, spanning May to July. That compares with income of $1.2 billion, or 22 cents per share, in the same period a year ago.
Excluding the cost of stock-based compensation, restructuring costs and other items, Cisco said it would have earned 47 cents per share, up from 40 cents per share earned last year.
On that basis, Cisco's earnings were 2 cents above the average analyst estimate, as polled by FactSet.
Revenue rose 4.4 percent to $11.7 billion, beating estimates. Cisco had brought down expectations at the start of the quarter, saying global economic turmoil was holding it back.
Shares of the San Jose, Calif., company rose 83 cents, or 4.7 percent, to $18.17 in extended trading, after the release of the results.
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