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Cisco quarterly earnings beat estimates; shares rise

FILE PHOTO: The logo of the AMERICAN networking giant Cisco Systems is seen at their headquarters in Issy-les-Moulineaux, near Paris, France, April 3, 2018. REUTERS/Philippe Wojazer/File Photo

(Reuters) – Cisco Systems Inc reported quarterly profit above analysts estimates on Wednesday, boosted by the growth in the traditional business of selling switches and routers, and power in the field, such as cyber security.

Cisco turned to software and cyber security to counter the slowdown in demand for the routers and switches, as businesses increasingly opt for cloud-based services instead of building their own networks.

Sales in the infrastructure platform business, including switches and routers, increased by 5% to $7.55 billion. Analysts had expected revenue of $ 7.47 billion, according to the IBES data of Refinitiv.

The turnover in the company safety matters, that the firewall offers protection and violation detection systems, increased by 21% to $707 million, beating the estimates of $670.4 million.

The company forecast fourth-quarter adjusted earnings of between 80 cents and 82 cents per share, the mid-point of which was in line with analysts’ estimates.

The net profit rose to $3.04 billion, or 69 cents per share, in the third quarter that ended on 27 April from € 2.69 billion, or 56 cents per share, a year earlier.

On an adjusted basis, the company earned 78 cents per share. Analysts had expected Cisco to earn 77 cents per share.

The total turnover increased by approximately 4 percent to $12.96 billion, beating the estimates of $12.89 billion.

Shares of the company rose 2.9% to $53.99 in the extended trade.

Reporting by Akanksha Rana, Bengaluru and Stephen Nellis in San Francisco; Editing by Anil D’silva

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