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

Coal Block Allocation

Coal Block Allocation

Government urges Supreme Court to not cancel some 'illegal' coal mines  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks  Full Article 

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Managing Share Sales

Managing Share Sales

Govt seeks bids from banks to manage PFC, REC share sales   Full Article 

Reuters India Mobile

Reuters India Mobile

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