NEW YORK (TheStreet) -- Shares of Cisco Systems (CSCO) were gaining 2.1% to $25.67 after-hours Wednesday after the communications maker beat analysts' estimates for earnings and revenue in the fiscal first quarter.
Cisco company reported earnings of 54 cents for the fourth quarter, above the 53 cents a share analysts surveyed by FactSet expected for the quarter. Revenue grew 1.3% year over year to $12.24 billion for the quarter, compared to analysts' estimates of $12.17 billion.
"This was our strongest Q1 ever in terms of revenue, non-GAAP operating income, and non-GAAP EPS," chairman and CEO John Chamber said in a statement. "We continue to make progress towards becoming the #1 IT company in the world. We are still in a tough environment, but seeing encouraging trends as cities, businesses, governments and schools are becoming more digitized."
The company also announced that CFO Franck Calderoni will leave the company effective Jan. 1, 2015. Cisco said it plans to appoint senior vice presidet of business technology and operations finance, Kelly A. Kramer CFO following the Calderoni's departure.
TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CISCO SYSTEMS INC (CSCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."