NEW YORK (
(CSCO - Get Report) experienced a volatile after-hours session on Wednesday as shares of the networking giant first rallied on the heels of a better than expected quarterly report then quickly turned lower during the company's conference call as executives offered up underwhelming outlook.
The Dow component posted an
adjusted profit of $2.35 billion, or 42 cents a share, for its fiscal third quarter ended in April on revenue of $10.87 billion, topping the average estimate of analysts polled by
Thomson Reuters for earnings of 37 cents a share on revenue of $10.85 billion.
The shares initially surged in late trades, running as much as 4.6% higher to $18.59, before reversing course and sliding into negative territory as the company said it expects adjusted earnings of 37 to 39 cents a share in its fiscal fourth quarter ending in July, below the current consensus view of 41 cents. Revenue is projected to be flat to up 2% year-over-year for the quarter, also a disappointment.
>>>Cisco Shares Wobble: Live Blog
The stock was last quoted at $17.25, down 3%, on volume of nearly 25 million shares, according to
The quick sell-off underscores the market's frustration with Cisco and John Chambers, its chief executive officer, as the company has made a habit of giving below-consensus guidance in recent quarters. When the company reported its fiscal second-quarter results on Feb. 9, the weak forecast for the third quarter sent shares more than 10% lower in after-hours trades.
The company had stirred up some optimism ahead of this latest report, however, with Chambers having acknowledged the need for changes, and Cisco taking steps to restructure and streamline operations. Based on Wednesday's regular session close at $17.78, the stock had bounced more than 7% since plumbing a 52-week low of $16.52 on April 19.
slumped in late trades after
(INTC - Get Report)
disclosed plans to sell 10 million shares of Clearwire Class A common stock in the open market.
The stock was last quoted at $4.52, down 4.4%, on volume of less than 80,000. Based on Wednesday's regular session close at $4.73, the shares are down 8% since the start of 2011 and 41% in the past year.