Cisco Profit, Revenue Both Top Analysts' Expectations
Cisco Systems reported stronger-than-expected quarterly results as a recovering global economy and growing Internet use prompted companies to upgrade their networks.
The computer networking company reported fiscal third-quarter earnings of 42 cents a share excluding one-time items, up from 30 cents a share last year.
Sales for the most recent quarter leaped to $10.37 billion. Last year this time, sales stood at $8.162 billion.
Cisco was seen posting a profit of 39 cents a share on revenue of $10.237 billion, according to an analysts' consensus estimate compiled by Thomson Reuters.
"We emerge from this downturn gaining market share, a larger share of the total wallet spend of our customers,'' Chambers said in a statement. "It is clear that our game plan for how to handle economic downturns is hitting on all cylinders."
"Good solid quarter," said Broadpoint Amtech Analyst Mark McKechnie. "Chambers' commentary sounds pretty good—he's talking about balanced growth across geographies and product segments. He calls this one of the strongest quarters in history for the company."
The growing prevelance of Web applications, particularly video apps, is improving the economic fundamentals for Cisco, which makes the routers and switches that control the way data flows over networks.
The results underscore Cisco's continued recovery from the technology downturn of 2009. Despite initial fears of a 2001-style freeze in corporate spending, recent results show companies have been quick to resume investment in Cisco's products.
On a GAAP basis that includes one-time charges and other items, Cisco's quarterly profit rose to $2.2 billion, or 37 cents per share, compared with $1.3 billion, or 23 cents a share, a year earlier.
Despite Cisco's solid results, the company's shares were lower in extended trading Wednesday. Get after-hour Cisco quotes here.
At closing bell on the Nasdaq, Cisco stock had risen more than 3 percent to $26.76.