Cisco share price leaps as it smashes expectations and hikes share buyback by $15bn

 
Emma Haslett
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Cisco Announces Quarterly Earnings
Cisco shares leaped on the news (Source: Getty)

Computer networking giant Cisco has smashed analyst expectations, with earnings per share of $0.57 in the quarter to the end of January, against expectations of $0.54.

The company said it will increase its share buyback programme by $15bn (£10bn), pushing it up to a total of $112bn. Meanwhile, it declared a quarterly dividend of $0.26 per share, up 24 per cent.

In a statement today, the company said it made revenues of $11.9bn, flat on the same period last year. Net income rose 31 per cent, from $2.4bn last year to $3.1bn in 2016.

Meanwhile, net income rose seven per cent to $2.9bn, from $2.7bn.

Kelly Kramer, the company's executive vice president and chief financial officer, said it had been a "strong quarter" for the company.

"I'm happy with the progress we are making as we continue to shift our business model to more software, and recurring revenue.

"We are very confident in the strength of our business and future cash flows allowing the substantial increase of our dividend this quarter to $0.26. We remain committed to our shareholders in delivering profitable growth and returning a minimum of 50 percent of our free cash flow back annually."

Not surprisingly, shares leaped almost 10 per cent in after-hours trading, to $22.51

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