by Agustino
Fontevecchia, Forbes Staff
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Cisco had a good third quarter - Image credit: Getty
Images via @daylife
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Cisco posted third
quarter earnings after the bell on Wednesday, beating estimates and
delivering a ninth consecutive quarter of “record” revenues. Shares in the
large networking and communications firm surged more than 8% in post-market
trading.
Non-GAAP net income rose 4.7% to $2.7 billion in the third quarter for Cisco,
which earned 51 cents per share; Wall Street was expecting an EPS
of 49 cents.
Cisco’s revenue grew 5.4% to $12.2 billion, in line with consensus
expectations. John Chambers, Cisco’s CEO noted the company managed to execute
“in a slow, but steady economic environment.” Chambers added, “we are starting
to see some good signs in the US and other parts of the world which are
encouraging.”
Gross margin, a widely followed figure, remained relatively steady at 61.4%,
just 20 basis points below its levels in the year-ago quarter. Cash from
operations came in at $3.1 billion, while Cisco’s cash and cash equivalents
stood at a massive $47.4 billion. Cisco, along with several major tech
competitors including Apple AAPL -3.38%, Google GOOG +3.26%, and Microsoft MSFT +0.94%, are among the global companies
with the largest cash reserves in the world.
Cisco’s stock performance this year has been poor, with shares rallying less
than 5% compared to a nearly 12% gain for the Nasdaq, which closed at its
highest levels in more than a decade on Wednesday. Investors appeared pleased
with Cisco’s third quarter financial performance, though, as the stock was up
8.1% to $22.93 by 5:02 PM in New York.
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