Cisco quarterly earnings beat estimates; shares rise

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Cisco Systems Inc reported quarterly earnings above analysts' estimates on Wednesday, boosted by growth in its traditional business of selling ...

REUTERS: Cisco Systems Inc reported quarterly earnings above analysts' estimates on Wednesday, boosted by growth in its traditional business of selling switches and routers, as well as strength in its focus areas such as cyber security.

Cisco pivoted to software and cyber security to counter slowing demand for its routers and switches as companies increasingly opt for cloud-based services instead of building their own networks.Revenue in its infrastructure platform business, which includes switches and routers, rose 5per cent to US$7.55 billion. Analysts had expected revenue of US$7.47 billion, according to IBES data from Refinitiv.

Sales in the company's security business, which offers firewall protection and breach detection systems, rose 21per cent to US$707 million, beating estimates of US$670.4 million. The company forecast fourth-quarter adjusted profit of between 80 cents and 82 cents per share, the mid-point of which was in line with analysts' estimates.

Net income rose to US$3.04 billion, or 69 cents per share, in the third quarter ended April 27 from US$2.69 billion, or 56 cents per share, a year earlier.On an adjusted basis, the company earned 78 cents per share. Analysts were expecting Cisco to earn 77 cents per share.Shares of the company rose 2.9per cent to US$53.99 in extended trading.

 

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