Cisco Systems Q2 Results Beat Street; Shares Up 5%

(RTTNews) - Silicon Valley giant Cisco Systems Inc., (CSCO) Wednesday posted a loss for the second quarter, hurt largely by charges related to latest reforms in the US tax laws.

However, Cisco's shares gained 5 percent in after-hours trading, after the company reported an adjusted profit and revenues that trumped analysts estimates and provided a third-quarter outlook above current expectations.

The San Jose, California-based networking-equipment maker reported second-quarter loss of $8.78 billion or $1.78 per share, compared to last year's profit of $2.35 billion or $0.47 per share.

Results for the quarter included charges of $11.1 billion related to the recent tax reforms.

Adjusted earnings for the quarter were $0.63 per share, up from $0.57 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.59 per share for the quarter.

Revenues for the quarter grew 2 percent to $11.89 from $11.58 billion last year. Analysts had a consensus revenue estimate of $11.81 billion for the quarter.

"We had a great quarter which demonstrates that our strategy is working. Our business is growing, we have a fantastic innovation pipeline, our balance sheet is strong and we have a team that's executing incredibly well," said CEO Chuck Robbins. "The network is more critical to business success than ever, and our new intent-based networking portfolio has great momentum including the fastest ramping new product in our history."

Looking forward to the third quarter, Cisco expects adjusted earnings of $0.64 to $0.66 per share with revenue growth of 3 to 5 percent. Analysts currently expect earnings of $0.63 per share, with revenue growth of 1.60 percent.

Cisco has also approved a $25 billion increase to the stock repurchase program.

CSCO closed Wednesday's trading at $42.09, up $0.86 or 2.09%, on the Nasdaq. The stock further gained $2.26 or 5.16% in after-hours trading.