This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cisco Edges Past Street Estimates

Stocks in this article: CSCO

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

NEW YORK ( TheStreet) -- Cisco (CSCO) 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.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs