Cisco Rises After Topping Estimates; Gives Strong Guidance

Cisco beat analysts fiscal third quarter estimates and provided fourth quarter earnings guidance that was also ahead of expectations.
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Cisco shares were gaining after hours Wednesday after the company reported fiscal third quarter results that topped analyst estimates for the period. 

The networking equipment maker reported quarterly earnings of 79 cents per share on revenue that fell 8% year over year to $12 billion. Analysts were expecting the company to report earnings of 71 cents per share on revenue of $11.88 billion. 

Cisco shares were rising 2.5% to $43 per share after hours Wednesday. 

"During this extraordinary time, our priority has been supporting our employees, customers, partners and communities, while positioning Cisco for the future," said CEO Chuck Robbins in a statement.

Cisco said that 95% of its global workforce is working from home while the 5% still in office are being protected from the coronavirus. 

"The pandemic has driven organizations across the globe to digitize their operations and support remote workforces at a faster speed and greater scale than ever before. We remain focused on providing the technology and solutions our customers need," Robbins said.

The company also provided fourth quarter revenue guidance suggesting an 8.5% to 11.5% year-over-year decline with earnings expected to range between 72 cents and 74 cents per share. 

Analysts are expecting Cisco to report fourth quarter earnings of 71 cents per share.  

"We executed well in Q3 in a very challenging environment, delivering strong margins and non-GAAP EPS growth," said CFO Kelly Kramer.

Cisco says that software subscriptions now make up 74% of its software revenue, a 9 percentage point year over year increase.