Cisco Strength Good Signal for Economy: CEO Chambers
Cisco Systems Chairman and CEO John Chambers told CNBC on Thursday he sees "good balance across the board," following the company's announcement of better-than-expected earnings and revenues.
For Cisco's performance, he said in a "Squawk Box" interview, "the U.S. is actually looking pretty solid in terms of growth, and that's a good signal for the economy. But also the emerging markets did very, very well for us. I think we're doing well in a tough market."
"[The economy] feels good," he added, saying that Cisco's earnings usually lead overall growth by two to four quarters.
After Wednesday's closing bell, the company reported a surprise beat on fiscal third-quarter earnings and revenue, suggesting the networking-gear maker's customers are spending more on technology.
Excluding items, profits to 51 cents a share from 48 cents a share a year ago, while revenue climbed 5 percent to $12.22 billion from $11.59 billion. Analysts had expected Cisco to report earnings 49 cents a share on $12.18 billion in revenue, according to consensus estimates from Thomson Reuters.
(Read More: Cisco Earnings Beat Amid Signs of Recovery)
Cisco is continually reinventing itself where appropriate, Chambers said. "The market is changing more rapidly than at any time I've been in business. Many times change intimidates people. [At] Cisco, we tend to respond to change and excel at it."
For the fourth quarter, Cisco expects earnings excluding items of 50 to 52 cents a share. Expectations had called for earnings of 51 cents. Cisco expects revenue for its next quarter to grow 4 to 7 percent. Wall Street had estimated a 7 percent increase.
Besides talking about Cisco's financials, Chambers said that tax policy in the United States should make it easier to repatriate cash from overseas.