Cisco Systems Inc. shares rose in the extended session Wednesday after the networking company’s earnings and outlook topped Wall Street estimates.
Cisco CSCO, -0.32% shares advanced more than 5% in after-hours trading, following a 0.3% decline to close at $43.86 in the regular session. For the year, Cisco shares are up 14.5% while the Dow Jones Industrial Average DJIA, -0.54% which counts Cisco as a component, is up 1.8%, the S&P 500 index SPX, -0.76% has gained 5.4%, and the tech-heavy Nasdaq Composite Index COMP, -1.23% has advanced up 12.6% in the same period.
The company reported fiscal fourth-quarter net income of $3.8 billion, or 81 cents a share, compared with $2.42 billion, or 48 cents a share, in the year-ago period. Adjusted earnings were 70 cents a share, and revenue rose to $12.84 billion from $12.13 billion in the year-ago period.
“We had a very strong finish to a great year and generated our highest quarterly revenue of $12.8 billion,” Cisco Chief Executive Chuck Robbins said in a statement.
Of the 27 analysts surveyed by FactSet, Cisco on average was expected to post adjusted earnings of 69 cents a share. The company had forecast earnings of 68 cents to 70 cents a share. Wall Street had expected revenue of $12.77 billion, according to 25 analysts polled by FactSet. Cisco predicted revenue of $12.62 billion to $12.86 billion.
Cisco reported product revenue of $9.64 billion, above the Wall Street consensus of $9.53 billion. The company reported infrastructure platform revenue of $7.44 billion, compared with the $7.28 billion Street consensus. Applications revenue was $1.34 billion, just shy of the $1.4 billion that analysts expected on average. Security revenue was $627 million, above the $614.8 million expected by the Street. “Other products” revenue was $232 million, compared with the Street’s expectations of $255.9 million.
Services revenue, however, came in at $3.20 billion, a hair short of the Street consensus of $3.22 billion. In the previous earnings report, Cisco shares fell after its services revenue came in light.
For the first fiscal quarter, Cisco estimates adjusted earnings of 70 cents to 72 cents a share on revenue of $12.74 billion to $12.99 billion, while analysts expected earnings of 69 cents a share on revenue of $12.58 billion.
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