Cisco Systems Inc. (CSCO) announced its financial results for the third quarter that beat consensus forecast. It also announced its earnings and revenue outlook for the fourth quarter that matched analysts’ estimates.
The network gear maker reported net income of $2.69 billion, or 56 cents a share for the three-month period ended April 28, up from $2.52 billion, or 50 cents a share in the same period last year. On an adjusted basis, the company reported earnings of 66 cents a share.
Revenue for the quarter came in at $12.46 billion, up 4.4 percent from the comparable quarter last year. Analysts on average were looking for earnings of 65 cents on $12.43 billion in revenue.
Under the supervision of CEO Chuck Robbins, Cisco entered into newer growth areas including cyber security, cloud computing and Internet of things, thus limiting its dependence on traditional business of switches and routers supply.
Revenue at the company’s security segment jumped 11 percent to $583 million in the just-ended quarter. The business provides breach detection and firewall protection systems to customers.
Comparatively, revenue from the unit that offers technical and internet network support surged 3 percent to $3.16 billion.
Looking forward, the San Jose, California-based company expects earnings in a range of 68 cents a share to 70 cents a share for the current quarter, in line with the consensus forecast of 69 cents.
Revenue for the fourth-quarter is expected to come in between $12.62 billion and $12.86 billion, representing a surge of 4-6 percent versus last year. Analysts on average had forecasted revenue of $12.73 billion.
Cisco shares plummeted more than 3.5 percent in the after-hours trading session on Wednesday, despite reporting better-than-expected results for the fourth quarter.