Cisco results beat Street; CEO sees improvement in Europe

Thu Feb 14, 2013 4:54am IST

A sign marking a Cisco office is pictured in San Diego, California November 12, 2012. REUTERS/Mike Blake

A sign marking a Cisco office is pictured in San Diego, California November 12, 2012.

Credit: Reuters/Mike Blake

Related Topics

Stocks

   

(Reuters) - Cisco (CSCO.O), the network equipment maker, reported quarterly results that topped Wall Street views on Wednesday, and its chief executive said there were signs of improvements in its business in Europe.

"We are seeing early signs of stabilization in government spending and also in probably a little bit over two thirds of Europe," John Chambers, the CEO, told analysts on a conference call after results were announced.

"But I want to watch that for at least another quarter before I get really excited about it," he added.

Chambers comments on economic development are generally watched closely because Cisco is considered a sector bellwether due to its global scale and diverse client base.

Cisco's shares lost 2.4 percent in after-hours trading to $20.63.

For its fiscal second quarter that ended January 26, Cisco reported revenue rose 5 percent to $12.1 billion versus a year ago. Analysts, on average, were expecting $12.06 billion, as compiled by Thomson Reuters I/B/E/S.

Income, excluding items, rose 6.2 percent to $2.7 billion, or 51 cents per share, 3 cents above analysts' average estimate of 48 cents a share.

The company said it expects revenue in its fiscal third quarter, which runs until the end of April, to grow 4 percent to percent compared with a year ago.

It forecast earnings per share, excluding items, in a range of 48-50 cents, in line with average analyst expectations of 49 cents.

With analysts expecting that Cisco would top their forecasts, Shaw Wu, an analyst at Sterne Agee, said, "It's pretty much going to boil down to guidance now."

"They did say they got a benefit from taxes," he said of the second-quarter result. "When you (take) that out it's 50 cents. That still beat by 2 cents." (Reporting By Nicola Leske; Additional reporting by Sinead Carew; Editing by Tim Dobbyn and Leslie Adler)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage