UPDATE: Cisco stock rises as earnings, revenue forecast top Wall Street estimates
4:23 PM ET 5/15/19 | MarketWatch
| Related Quotes | | |  | | 4:15 PM ET 5/15/19 | | Symbol | Last | % Chg |
CSCO
| 52.44 | 0.81% | | Real time quote. | | |
UPDATE: Cisco stock rises as earnings, revenue forecast top Wall Street estimates
By Wallace Witkowski, MarketWatch
Earnings outlook for networking company's fiscal fourth quarter in-line with estimates
Cisco Systems Inc.'s stock rose in the extended session Wednesday after the networking company reported quarterly results that topped Wall Street estimates and a revenue forecast for the end of its fiscal year that exceeded the analyst consensus.
Cisco (CSCO) shares rose 3% after hours. The company reported fiscal third-quarter net income of $3.04 billion, or 69 cents a share, compared with a $2.69 billion, or 56 cents a share, in the year-ago period. Adjusted earnings were 78 cents a share. Analysts surveyed by FactSet had forecast earnings of 77 cents a share, while Cisco had forecast earnings of 76 cents to 78 cents a share.
Revenue rose to $12.96 billion from $12.46 billion in the year-ago quarter. Product revenue rose to $9.72 billion from $9.3 billion a year ago, and service revenue rose to $3.24 billion from $3.16 billion last year. Analysts had expected revenue of $12.89 billion, while Cisco had forecast revenue of $12.96 billion to $13.21 billion. Wall Street had forecast product revenue of $9.65 billion and service revenue of $3.22 billion.
For the fourth quarter, Cisco expects adjusted earnings of 80 cents to 82 cents a share on 4.5% to 6.5% year-over-year revenue growth, or $13.21 billion to $13.46 billion. Cisco said the forecast excludes the company's now divested Service Provider Video Software Solutions business, which brought in $206 million in the fourth quarter in 2018.
Analysts had estimated earnings of 81 cents a share on revenue of $13.29 billion.
Cisco said it returned $7.5 billion to shareholders through share buybacks and dividends in the third quarter: $1.5 billion though dividends and $6 billion in the buyback of about 116 million shares at an average price of $52.14 a share. Cisco said it still has $18 billion in buyback authority remaining.
Cisco shares closed Wednesday up 0.8% at $52.44, while the Dow Jones Industrial Average gained 0.5%, the S&P 500 index rose 0.6%, and the tech-heavy Nasdaq Composite Index advanced 1.1%.
-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com
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