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Cisco shares jump after beating the Street

Chuck Robbins, CEO, Cisco
Manuel Blondeau | AOP.Press | Corbis | Getty Images
Chuck Robbins, CEO, Cisco

Shares of Cisco gained 3 percent Thursday following better-than-expected quarterly results, driven by growth in Asia.

The company announced fiscal fourth quarter sales of $12 billion, beating Wall Street consensus estimates of $11.97 billion, according to Thomson Reuters. Earnings also beat, coming in at 57 cents per share versus consensus of 55 cents. The company's profit per share rose 6 percent and total sales were down 1 percent, year over year.

"I'm pleased with our performance today as well as the progress we're making in transitioning our business to a more software and subscription focus, which we'll continue to apply across our entire portfolio," CEO Chuck Robbins said in statement. "We delivered a strong third quarter, executing well despite the challenging environment."

Analysts at Guggenheim said strong results were boosted by momentum in software and services.

"Cisco's relatively upbeat commentary should help ease fears around broader IT demand," a note from Guggenheim said. "While overall spending outlook is tepid, Cisco's solid performance in DC switching and security reinforce that pockets of strength should persist around products levered to cloud and next-gen security adoption."

Sales in Asia were especially strong. In Asia Pacific, China and Japan, sales rose 10 percent to $1.94 billion. The company generates more than a third of revenue from outside of the Americas, where revenue fell 3 percent. Meanwhile, sales in Europe, the Middle East, and Africa fell 4 percent to $3 billion.

Shares of the networking company are up 1.5 percent year to date. They traded around $28 Thursday, down from a 52-week high of $29.90.