NEW YORK (TheStreet) -- Shares of Cisco Systems (CSCO) were falling 0.5% to $$29.21 after-hours trading on Wednesday despite the networking and communications company's positive fiscal third quarter results which beat analysts' estimates for earnings and revenue.
Cisco reported earnings of 54 cents a share for the third quarter, above analysts' estimates of 53 cents a share for the quarter. Revenue grew 4.9% year over year to $12.14 billion for the quarter, compared to analysts' estimates of $12.07 billion.
"Cisco is in a very strong position and we delivered another solid quarter," Chairman and CEO John Chambers said. "Our vision and strategy are working and we are executing very well in a tough environment, as evidenced in our revenue growth, profitability, strong gross margins and cash generation."
Chambers continued, "We have a tremendous opportunity to extend our lead in the industry, and with Chuck Robbins as the CEO for Cisco's next chapter, we have exactly the right leader to capture that opportunity."
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 revenue growth, solid stock price performance, notable return on equity, attractive valuation levels and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."