Cisco (CSCO) Beats (Like Always), Ups Guidance; Plus MGM

Silicon Valley tech major Cisco Systems (CSCO - Free Report) has reported fiscal Q2 2019 numbers after the bell Wednesday, and the results were routinely better than expected. Earnings of 73 cents per share topped the Zacks consensus by a penny, on $12.45 billion in quarterly sales that outperformed the $12.40 billion our analysts were looking for. The Zacks Rank #3 (Hold)-rated company ahead of the earnings release has not missed bottom-line expectations since we recalibrated results for technology firms in calendar Q4 of 2015.

What’s pushing shares of Cisco northward in late trading is the company guidance for its fiscal Q3 (ending April), toward an earnings range of 76-78 cents per share on revenues expected to grow 4-6% year over year. The Zacks consensus for these figures had been 75 cents per share on revenue growth expected at 2-3%. Also, Cisco has raised its dividend by 6% and announced a $15 billion share buyback program.

Shares had already gone back up toward multi-year highs prior to this earnings report, and now we’re seeing a new bid up roughly 3.7% in the after-market.

MGM Resorts (MGM - Free Report) also surpassed expectations by a penny to 14 cents per share, on revenues of $3.05 billion in the quarter which took out the Zacks consensus estimate of $2.95 billion. This Zacks Rank #3-rated company also increased its dividend yield, by 8%, on in-line China revenues and its Las Vegas segment which beat relatively easy year-over-year comps. MGM has only missed bottom-line estimates 3 times in the last 4 years.

Disclosure: None.

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