This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cisco Edges Past Street Estimates

Cisco story updated with executive comments and more information from the company's conference call.

NEW YORK ( TheStreet) -- Cisco (CSCO - Get Report) shares fell 2.6% in after-hours trading Wednesday after edging Wall Street's third-quarter estimates, as the company continues to refocus operations on its core networking business.

The San Jose, Calif.-based company is trying to turn around its business after a failed attempt to build a consumer brand allowed rivals like HP (HPQ) and Juniper Networks (JNPR) to grab networking market share.

Cisco brought in revenue of $10.9 billion and adjusted earnings of 42 cents a share, compared to $10.4 billion and 42 cents a share during the same period last year. Analysts had forecast sales of $10.86 billion and earnings of 37 cents a share.

"We have acknowledged our challenges," CEO John Chambers said in a press release. "We know what we have to do. We have a clear game plan."

The company plans to implement a headcount reduction this summer, it said during its analyst call, and intends to reduce costs by $1 billion by the end of fiscal year 2012.

Chambers again reiterated concern about the public sector, which saw an 8% annual decline, compared to 30% growth four quarters ago.

"There are no excuses, we must adjust quickly," he said.

Cisco's switching business also declined 9% year-over-year as a result of pricing pressures.

Cisco said it expects adjusted earnings between 37 cents and 39 cents per share for the fourth quarter, below analyst expectations of 42 cents per share. Revenue growth will be flat to up to 2%, it said, below the 7% to 8% growth analysts had anticipated.

Cisco shares have declined 30% within the last month because of its sluggish growth, while the Nasdaq composite has risen 20%.



--Written by Olivia Oran in New York.



>To follow the writer on Twitter, go to http://twitter.com/Ozoran.

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CSCO $27.92 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs