The networking sector hasn't been feeling well in 2012. From Juniper Networks
That background may have turned the stomachs of Cisco Systems
But my fellow Fool Paul Chi wasn't too worried. He expected a solid second-quarter report followed by modest guidance in the Juniper mold. And that's pretty much what happened.
Cisco's sales jumped 11% year over year to $11.5 billion and non-GAAP earnings increased 27%, to $0.47 per share. That's slightly ahead of Wall Street's projections, and Cisco's management expected just an 8% revenue boost at best.
The company also boosted its dividend by 33%, to $0.08 per share for the quarter. CFO Frank Calderoni simply credited "the strength of our business" for motivating the increase. And in another sign that at least some of those supposedly industry-wide telecom worries really point to a shift in market shares, Cisco credited Big Red, network operator Verizon
All things considered, I think we can lay to rest the idea that American telecoms aren't investing in their networks today -- they're just buying their stuff from a different set of vendors. And Cisco is on the winning side of this market shift.
Infinera and Cisco made me look dumb, but I'll get over it. Nobody -- including us CAPS all-stars -- bats 1.000 in this brutal market. But some elite investors never look stupid – in fact, you wouldn't believe what those geniuses are buying today while everyone else is selling.
Fool contributor Anders Bylund holds no position in any of the companies mentioned. Check out Anders' holdings and bio, or follow him on Twitter and Google+. The Motley Fool owns shares of Cisco Systems and Infinera. Motley Fool newsletter services have recommended buying shares of Cisco Systems and Infinera. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. We have a disclosure policy.