Cisco Systems Inc.'s share rose in the extended session on Wednesday after the network company reported quarterly results that peaked Wall Street estimates and a revenue request for the end of the fiscal year that exceeded analysts' consensus among higher tariffs in escalating trade wars with China.
CSCO, + 0.81%
shares rose 3% by hours. In the fourth quarter, Cisco expects revenue growth of 80 cents to 82 cents per share to increase by 4.5 percent to 6.5 percent over the year, or $ 1
On the conference call revenue, Cisco chairman and CEO Chuck Robbins said that the 25% tariff rate from 10% is already "baked" in the outlook. This week, China said it was imposing tariffs of up to 25% on US goods, quoting the 25% tariffs that President Donald Trump imposed on $ 200 billion in Chinese goods.
Robbins said Cisco has been in contact with the Trump administration to make it understand the impact of the tariffs, that it has continued to optimize the supply chain, and will make price adjustments when needed.
"Last week, when we saw the indication that prices would move to 25% on Friday morning, the teams entered and we actually accomplished everything we need to do to tackle tariffs," Robbins told analysts on the call.
Last year, Cisco reported Wednesday's net revenue of $ 3.04 billion, or 69 cents per share, compared to $ 2.69 billion, or 56 cents per share in the previous period, adjusted earnings were 78 cents per share. was investigated by FactSet had expected earnings of 77 cents per share, while Cisco had expected revenues of 76 cents to 78 cents per share.
Revenue increased to $ 12.96 billion from $ 12.46 billion in the quarter. $ 9.7 billion from $ 9.3 billion a year ago, and service revenue rose to $ 3.24 billion from $ 3.16 billion last year, with analysts expecting revenues of $ 12.89 billion, while Cisco had expected sales of $ 12.96 billion to $ 13.21 billion. Wall Street had forecast product revenues of $ 9.65 billion and service revenue of $ 3.22 billion.
Cisco said it returned $ 7.5 billion to shareholders through buybacks and dividends in the third quarter: $ 1.5 billion in dividends and $ 6 billion in the buyback of about 116 million shares at an average price of $ 52.14 per share. Cisco said it still has $ 18 billion in repurchase authority again.
Cisco shares closed Wednesday up 0.8% at $ 52.44, while the Dow Jones Industrial Average
DJIA, + 0.45%
received 0.5%, S & P 500 index
SPX, + 0.58%
increased 0.6%, and the technological heavy Nasdaq Composite Index
COMP, + 1.13%
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