NEW YORK (Reuters) - Cisco Systems Inc (CSCO.O) reported quarterly results over Wall Street forecasts, as demand for network equipment helped the company grow, despite worries of a slower U.S. economy. Cisco shares rose nearly 4 percent after the company also said it was very comfortable with its long-term revenue growth target of 12 percent to 17 percent.
"It was a solid clean result," said Mark McKechnie, an analyst at American Technology Research.
Cisco, which sells routers and switches that direct Web traffic, said its profit for the fiscal fourth quarter ended July 26 rose to $2.0 billion, or 33 cents a share, from $1.9 billion, or 31 cents a share, in the year-ago quarter.
Earnings excluding items rose to 40 cents per share from 36 cents and exceeded the average analyst forecast by a penny, according to Reuters Estimates.
Quarterly revenue rose 9.9 percent to $10.4 billion, the first quarter in the company's history to surpass $10 billion. Analysts on average had expected revenue of $10.3 billion.
Cisco shares rose 3.7 percent to $23.50 following the results, after gaining 3 percent in Nasdaq trading to close at
$22.65.
But the stock is still down around 23 percent from a year earlier amid worries the weak U.S. economy could drag down spending on network equipment.
Cisco Chief Executive John Chambers told Reuters last month many of his customers see the economy picking up late this year or early next year, with more expecting a recovery next year.
The company said on Tuesday that emerging market orders grew around 10 percent in the July quarter, whereas orders in the United States and Canada grew 7 percent. European orders grew 11 percent.
(Reporting by Ritsuko Ando and Sinead Carew; Editing by Andre Grenon )
"It was a solid clean result," said Mark McKechnie, an analyst at American Technology Research.
Cisco, which sells routers and switches that direct Web traffic, said its profit for the fiscal fourth quarter ended July 26 rose to $2.0 billion, or 33 cents a share, from $1.9 billion, or 31 cents a share, in the year-ago quarter.
Earnings excluding items rose to 40 cents per share from 36 cents and exceeded the average analyst forecast by a penny, according to Reuters Estimates.
Quarterly revenue rose 9.9 percent to $10.4 billion, the first quarter in the company's history to surpass $10 billion. Analysts on average had expected revenue of $10.3 billion.
Cisco shares rose 3.7 percent to $23.50 following the results, after gaining 3 percent in Nasdaq trading to close at
$22.65.
But the stock is still down around 23 percent from a year earlier amid worries the weak U.S. economy could drag down spending on network equipment.
Cisco Chief Executive John Chambers told Reuters last month many of his customers see the economy picking up late this year or early next year, with more expecting a recovery next year.
The company said on Tuesday that emerging market orders grew around 10 percent in the July quarter, whereas orders in the United States and Canada grew 7 percent. European orders grew 11 percent.
(Reporting by Ritsuko Ando and Sinead Carew; Editing by Andre Grenon )
Posts
No comments:
Post a Comment