Cisco Systems, Inc. Shares Rise 7% on Earnings Beat and Growth Prospects

Source: Cisco.

Networking equipment giant Cisco Systems (NASDAQ: CSCO  ) just reported results for the third quarter of fiscal year 2014. Investors liked what they saw, bidding Cisco shares more than 7% higher in after-hours trading.

Sales decreased 5.5% year over year to land at $11.5 billion. Adjusted earnings stayed flat at $0.51 per share.

Analysts were looking for earnings of $0.48 per share on roughly $11.4 billion in sales, and Cisco exceeded both of these targets.

Product sales decreased 7.7% from the year-ago period, while service revenue increased by 2.6%. Cisco's book-to-bill ratio was "comfortably above 1," indicating a strong order flow and visibility into revenues in upcoming quarters.

Cisco saw respectable year-over-year growth in key markets such as data center products and Sourcefire security solutions. Europe and North America delivered single-digit growth, but traditional high-growth markets such as the BRIC bloc declined.

"Our financial results exceeded the guidance we provided last quarter as we demonstrated clear progress on returning to growth," said Cisco CEO John Chambers in a prepared statement. "The entire team is focused on moving Cisco forward aggressively and we remain confident in our long-term goal to be the #1 IT company."

Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 15, 2014, at 1:11 AM, mastrofinance wrote:

    How is this after-market news important? "The market has reacted within the last 5 hours." An earnings beat moving a stock 7%, after hours, with all the decreases to boot... talk about mixed signals.

    For most readers, they'll be just wondering why. You share no information about what is, what has, and what might happen. This is just so basic information for a so-called "specialist".

    This is not "Fool" worthy information, IMO. Anyone with any interest could know about this, at this time. How will the market react tomorrow? Will you revisit then? What's your point?

    Thank you for the careful, considered analysis. I'll keep it in mind as I consider renewing my Fool services.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2958164, ~/Articles/ArticleHandler.aspx, 9/5/2015 4:13:44 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Anders Bylund

Anders Bylund is a Foolish Technology and Entertainment Specialist. Where the two markets intersect, you'll find his wheelhouse. He has been an official Fool since 2006 but a jester all his life.

Hypoallergenic. Contains six flavors not found in nature. Believes in coyotes and time as an abstract.

Follow Anders on Twitter, LinkedIn, and Google+.

Today's Market

updated 6 hours ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 3:59 PM
CSCO $25.52 Down -0.38 -1.47%
Cisco Systems CAPS Rating: ****