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Cisco Tops Estimates but Offers Tepid Guidance

Company sees strong growth in Asia-Pacific Region and in security products
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Cisco Systems Inc.  (CSCO) - Get Cisco Systems Inc. Report topped fiscal third-quarter estimates, but offered weaker-than-expected guidance for the current quarter after the bell Wednesday.

The company posted non-GAAP earnings of 83 cents a share on revenue of $12.8 billion in the latest completed period. Cisco had been expected to make 82 cents a share, on sales of $12.6 billion, based on a FactSet survey of 27 analysts. In the same period a year ago the company posted earnings of 79 cents a share on sales of $12 billion.

Cisco forecasted non-GAAP earnings of 81 to 83 cents a share for its fiscal fourth quarter with revenue up 6% to 8%. Analysts surveyed by FactSet had been expecting the company to make 86 cents a share in the current period.

Shares of Cisco fell $3.26, or 6.2%, to $49.21 in after-hours trading. The stock lost 0.9% in the regular session.

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"We are confident in our strategy and our ability to lead the next phase of the recovery as our customers accelerate their adoption of hybrid work, digital transformation, cloud, and continued strong uptake of our subscription-based offerings," said Chuck Robbins, chairman and CEO of Cisco, in a statement.

During the latest quarter “81% of software revenue sold as a subscription, up from 76% last quarter” according to the statement.

The company said revenue in the Asia-Pacific region rose 19%, while security products sales rose 13% from the same period a year ago. 

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