Stock Market Watch

Cisco’s Q1 Profit Beats Estimates (CSCO)

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ciscoCisco Systems Inc. (NASDAQ: CSCO) after market close today reported a decline in its first-quarter profit. However, the company’s profit for the first quarter came in ahead of estimates, pushing shares higher in after-hours trading.

Cisco shares are currently up 3.01% to $18.14 in after-hours trading. The stock had closed 3.82% lower at $17.61 in regular trading earlier today.


San Jose, California-based Cisco reported a profit of $1.8 billion, or $0.33 per share for the firs quarter of fiscal 2012. For the same period in the previous year, the company had reported a profit of $1.9 billion, or $0.34 per share. The company’s adjusted profit for the first quarter was $0.43 per share. Its revenue for the first quarter of fiscal 2012 rose to $11.26 billion from $10.75 billion reported for the same period in the previous year.

Analysts were expecting Cisco to report adjusted earnings of $0.40 per share and revenue of $11 billion. Back in August, the company had called for an adjusted profit of $0.38-$0.41 per share.

Cisco’s gross margin for the quarter fell from 62.8% to 61.2% as costs climbed 9.3^. The company’s product segment revenue rose 2.9%, while its services revenue rose 12%.

Cisco Systems, which is engaged in designing, manufacturing and sale of Internet Protocol-based networking and other products related to the communications and IT industry was expected to report weaker results for its first quarter due to global economic uncertainty. The company has already cautioned in the past about the weakening public sector market.

Commenting on the better than expected first-quarter financial results, John Chambers, CEO of Cisco Systems, said that even in times of limited capital spending, intelligent networks are being deployed to drive new business, revenue and consumption models, enable new customer and employee experience and drive efficiencies.

 

edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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