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Cisco Profit, Revenue Outlook Above Estimates; Shares Pop

Cisco Systems (CSCO) reported fiscal first-quarter adjusted earnings that topped expectations by a penny and forecast December quarter profit and revenue above views, sending shares up in late trading.

X Cisco said Wednesday that fiscal first-quarter adjusted earnings were 61 cents a share, flat vs. a year earlier, with revenue falling 2% to $12.1 billion. A year earlier, Cisco earned 61 cents a share on sales of $12.35 billion. Analysts expected Cisco to report earnings of 60 cents on sales of $12.1 billion for the period ended Sept. 30.

In the December quarter, Cisco forecast earnings of 59 cents a share at its midpoint of guidance vs. estimates of 58 cents. Cisco said it expects revenue growth in a range of 1% to 3%. Analysts had projected revenue growth of 1% to $11.58 billion.

Cisco reported earnings for the first time using new product categories: infrastructure platforms, applications, security,  services and other amid its shift to recurring and subscription revenue models.


IBD'S TAKE: Cisco holds a Composite Rating of 67 and is ranked eighth in IBD's Computer-Networking Group. Tops in that group is Arista Networks (ANET), with a best-possible rating of 99.


"Cisco is delivering more insights and intelligence as we help our customers build highly secure, intelligent platforms for digital business," Chief Executive Chuck Robbins said in a news release.

Cisco has stepped up acquisitions, most recently purchasing BroadSoft (BSFT) and AppDynamics, to shift to software and services from its core business of selling network switches and routers.

Shares in the maker of computer networking gear rose 3.6% to 35.33 in after-hours trading on the stock market today.