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 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 - Get Report) 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.

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.

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