Cisco Systems Q4 Results Beat Street View, But Shares Down 5% On Outlook

(RTTNews) - Cisco Systems Inc. (CSCO) Wednesday reported a fourth-quarter profit that increased from last year. Earnings and revenues for the quarter trumped Wall Street analysts estimates. However, the company's shares dropped 5% in after-hours trade, hurt largely by its first-quarter outlook, which is below current estimates.

The San Jose, California-based networking-equipment maker reported fourth-quarter profit of $2.64 billion or $0.62 per share, up from last year's profit of $2.21 billion or $0.51 per share.

Adjusted earnings for the quarter were $3.4 billion or $0.80 per share. On average, 24 analysts polled by Thomson Reuters expected earnings of $0.74 per share. Analysts' estimates typically exclude special items.

Revenues for the quarter slipped 9% to $12.15 billion from $13.43 billion last year. Analysts had a consensus revenue estimate of $12.08 billion for the quarter.

"By the end of fiscal 2020, we achieved our goal of more than half of our revenue coming from software and services, and this strategy continues to resonate with customers as they digitize their organizations," said CEO Chuck Robbins.

Looking forward to the first quarter, Cisco expects adjusted earnings of $0.69 to $0.71 per share with revenues to decline 9% to 11%. Analysts currently expect earnings of $0.76 per share and revenues to drop 6.9%.

CSCO closed Wednesday trading at $49.93, up $0.80 or 1.63%, on the Nasdaq. The stock, however dropped $0.48 or 0.96% in the after-hours trading.