After-Hours Alert: Why Cisco Stock Is Surging

Cisco Systems Inc CSCO shares are trading higher in Wednesday's after-hours session after the company reported better-than-expected results and issued strong guidance. 

What Happened: Cisco said fiscal second-quarter revenue increased 7% year-over-year to $13.6 billion, which beat average analyst estimates of $13.43 billion, according to Benzinga Pro. The internet technology company reported quarterly adjusted earnings of 88 cents per share, which beat consensus estimates of 85 cents per share.

"With Cisco's strong Q2 performance, our fiscal 2023 is shaping up to be a great year. The modern, highly secure networks we are building serve as the backbone of our customers' technology strategy. This, combined with the success of our ongoing business transformation and operational discipline gives me confidence in our future," said Chuck Robbins, chair and CEO of Cisco.

Cisco anticipates fiscal third-quarter revenue growth of 11% to 13%. The company expects third-quarter adjusted earnings to be between 96 cents and 98 cents per share. 

Cisco sees full-year 2023 revenue growth in a range of 9% to 10.5%. The company expects full-year adjusted earnings to be between $3.73 and $3.78 per share versus estimates of $3.55 per share.

Cisco also increased its quarterly dividend by 3% (1 cent) to 39 cents per share.

Cisco will hold a conference call to discuss these results at 4:30 p.m. ET.

See Also: Here's A Look At Recent Price Target Changes By The Most Accurate Cisco Analysts

CSCO Price Action: Cisco has a 52-week high of $57.69 and a 52-week low of $38.61.

The stock was up 7.22% after hours at $51.92 at the time of publication, according to Benzinga Pro.

Photo: DennisM2 from Flickr.