Cisco Beat Estimates -- Lowered Estimates

Revenue was also "jumping" at TheStreet.com, which wrote that the $9.8 billion, came in "slightly above Wall Street's estimate of $9.75 billion." Technically true, but you have to read down three paragraphs to get the meaningful caveat. Snooze and you lose:

"Traders had been on edge after Chambers reduced expectations for revenue in the fiscal third quarter. On the company's last conference call, Chambers cut Cisco's fiscal third-quarter guidance to 10% growth, down from the 15% previously expected."

Read The San Jose Mercury News and it's as if the company never lowered top line expectations. Here's the headline, "Positive numbers for Cisco: GROWTH FOR QUARTER EXCEEDS EXPECTATIONS" and here's the lead: "Cisco Systems, often considered a bellwether for the health of the technology sector, reported third-quarter growth on Tuesday that exceeded expectations."

True enough on the profit side. But that revenue? The way the company ratcheted them down only three months ago? Is it mentioned anywhere in the body of the article? No.

The Associated Press was essentially of two minds. In a recent update, we see a positive though puzzled headline: profit beats view, shares rise, but investors are still cautious. Uh, why? We don't hear until down low, when they clue us in about the revenue:

"Sales came in at $9.79 billion, a 10.4 percent jump over the year-ago period. Analysts were expecting sales of $9.75 billion. Wall Street wasn't expecting fireworks from Cisco in the third quarter because the technology bellwether lowered its sales-growth target in February. Cisco blamed weakness in the U.S. economy, which was causing big customers to delay or scuttle big purchases."

Interestingly enough, the issue was up higher in an earlier AP report by the same journalist, and that headline, unlike the later one, gave a hint at the important factor concerning the revenue "beat" -- "Cisco 3Q profit beats subdued expectations: Cisco 3Q profit beats Wall Street's subdued forecast, shares rise after hours"

So dear readers, when you are reading quarterly report articles and there is no mention of when any of the numbers were set, just ask yourself: What Would The Business Press Maven do? Then crumple (virtually or literally) the article.