dividend increase and
overseas growth are among this morning's earnings headlines. But
the two stocks are headed in opposite directions.
- which had fallen on hard times since April - are up 7.5% this
morning on the strength of the company's 56% earnings increase.
Investors are also flocking to the tech stock for the bigger
dividend it plans to pay. The company announced that it is upping
its quarterly dividend from 8 cents to 14 cents.
Wal-Mart's second-quarter profits also grew. But shares of
America's largest retailer have retreated 3% this morning.
The company's $1.18-per-share in earnings was a 5.7%
improvement from the $1.09 per share it earned in the same
quarter a year ago. However, sales fell short of analyst
expectations, negating the better-than-anticipated profits and
strong full-year earnings outlook.
Despite today's pullback, Wal-Mart's future looks bright.
International sales are growing rapidly, increasing 6.4% last
quarter. And full-year earnings guidance improved to a
$4.83-$4.93 range from a $4.72-$4.92 back in February.
But Wal-Mart's growth outlook couldn't match Cisco's.
Revenue from Cisco's recent purchase of video company NDS will
start to kick this quarter - one reason the company expects
revenue growth as high as 6%.
Should profits continue to increase at the clip they did last
quarter, perhaps the company's dividend - which is just a year
old - will continue to swell.
If so, that should attract more investors back to what was
once the world's most valuable company.