The Cisco Kid Rides Again, Beats Q3 Views (CSCO)
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Price: $111.04 +1.32%
Financial Fact:
OPERATING INCOME: 2.88B
Today's EPS Names:
BTTX, VAXX, ELYS, More
Financial Fact:
OPERATING INCOME: 2.88B
Today's EPS Names:
BTTX, VAXX, ELYS, More
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After the market close Wednesday, Cisco (Nasdaq: CSCO) reported solid third-quarter financial results that easily beat low expectations.
The company reported non-GAAP EPS of $0.42, flat from last year but $0.05 better than the analyst estimate of $0.37.
Net sales in the quarter rose 5% from last year to $10.9 billion versus the consensus estimate of $10.86 billion.
"This quarter played out as we expected," said John Chambers, chairman and CEO, Cisco. "We have acknowledged our challenges. We know what we have to do. We have a clear game plan, and we are a company with a track record of market-shaping innovation. We thank our shareholders, employees, customers and partners as we transition to the next phase of Cisco."
Cisco's cash hoard is in focus with fellow tech-bellwether Microsoft recently using a portion of its cash for the acquisition of Skype. Cisco had cash and cash equivalents and investments of $43.4 billion at the end of the third quarter of fiscal 2011, up from $40.2 billion at the end of the last quarter.
During the quarter, the company initiated a quarterly common stock dividend of $0.06 per share.
UPDATE: After initially trading higher on the results, Cisco gave up the gains after giving a gloomy Q4 outlook on its conference call. CEO John Chambers has said the company has a few "problematic" areas and that managers and the Board are taking "comprehensive action" to simplify its complex operating model. The exec said he expects Cisco's business to continue to show weakness into Q4 and that the company has seen "significant" declines in public sector orders.
On its conference call, Cisco offered some guidance: sees Q4 adj-EPS of 37-39c, vs. the consensus of 41c, on sales of $10.84-$11.05 billion, which compares to the Street estimate of $11.59 billion. Sees quarterly non-GAAP gross margin of 62%.
The company reported non-GAAP EPS of $0.42, flat from last year but $0.05 better than the analyst estimate of $0.37.
Net sales in the quarter rose 5% from last year to $10.9 billion versus the consensus estimate of $10.86 billion.
"This quarter played out as we expected," said John Chambers, chairman and CEO, Cisco. "We have acknowledged our challenges. We know what we have to do. We have a clear game plan, and we are a company with a track record of market-shaping innovation. We thank our shareholders, employees, customers and partners as we transition to the next phase of Cisco."
Cisco's cash hoard is in focus with fellow tech-bellwether Microsoft recently using a portion of its cash for the acquisition of Skype. Cisco had cash and cash equivalents and investments of $43.4 billion at the end of the third quarter of fiscal 2011, up from $40.2 billion at the end of the last quarter.
During the quarter, the company initiated a quarterly common stock dividend of $0.06 per share.
UPDATE: After initially trading higher on the results, Cisco gave up the gains after giving a gloomy Q4 outlook on its conference call. CEO John Chambers has said the company has a few "problematic" areas and that managers and the Board are taking "comprehensive action" to simplify its complex operating model. The exec said he expects Cisco's business to continue to show weakness into Q4 and that the company has seen "significant" declines in public sector orders.
On its conference call, Cisco offered some guidance: sees Q4 adj-EPS of 37-39c, vs. the consensus of 41c, on sales of $10.84-$11.05 billion, which compares to the Street estimate of $11.59 billion. Sees quarterly non-GAAP gross margin of 62%.
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