Cisco earnings beat, but revenue guidance is reduced and the stock is struggling for direction

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Cisco Systems Inc. beat expectations for quarterly profit and sales Wednesday, but executives reduced their goal for full-year revenue and shares struggled.

Cisco Systems Inc. beat expectations for quarterly profit and sales in a report Wednesday, but executives reduced their goal for full-year revenue and shares struggled to find a direction in after-hours trading.

Cisco CSCO posted fiscal third-quarter net income of $3.2 billion, or 78 cents a share, on revenue of $14.57 billion, up from $12.84 billion a year ago. After adjusting for stock-based compensation and other costs, Cisco reported earnings of $1 a share, up from 87 cents a share in the same quarter a year ago.

Executives also increased their annual profit guidance, but brought down their goal for revenue growth. Cisco executives now expect adjusted earnings of $3.80 to $3.82 a share, after previously stating a range of $3.72 to $3.78 a share, while reducing their full-year revenue-growth target to 10% to 10.5% from 11% to 13%.

 

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