Cisco Eases Past Estimates, But Shares Slump
Cisco's fourth-quarter guidance and updated share price has been added to this story.
SAN JOSE, Calif. (TheStreet) -- Cisco (CSCO) eased past Wall Street's third-quarter estimates after market close on Wednesday, although the networking giant's shares slumped on weak guidance.
The gear maker brought in revenue of $11.59 billion, up from $10.87 billion in the prior year's quarter, and a tick above average analysts' estimate of $11.58 billion.
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| Cisco reported third-quarter results after market close. |
Excluding items, Cisco earned 48 cents a share, compared to 42 cents a share in the same period last year. Analysts surveyed by Thomson Reuters were looking for earnings of 47 cents a share.
"We delivered solid results this quarter with record revenue and non-GAAP earnings per share," said Cisco CEO John Chambers, in a statement. "We are successfully executing against our long-term strategic plan of growing profit faster than revenue, and in a cautious IT spending environment, we continue to outperform our competitors." Cisco shares, however, tanked in extended trading after the San Jose, Calif.-based firm forecast year-over-year fourth-quarter revenue growth of 2% to 5%. Wall Street expected sales growth of 7% compared to the prior year's quarter. Speaking during a conference call after market close, Cisco CEO John Chambers cited Europe, the public sector and India as areas of concern. Southern Europe's economic problems, he noted, have spread to northern Europe. The company's stock plunged $1.58, or 8.41%, to $17.20 in extended trading. The networking giant ended the quarter with cash, cash equivalents and investments of $48.4 billion, up from $46.7 billion at the end of the second quarter. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: tips@thestreet.com. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.Select the service that is right for you!
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