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Cisco's fiscal 2Q earnings rise above Street views

Published on NewsOK Modified: February 13, 2013 at 5:21 pm •  Published: February 13, 2013
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At the mid-point of that range, Cisco's revenue for the current quarter would be $12.16 billion — about $60 million below analyst forecasts. The company expects adjusted earnings of 48 cents to 50 cents per share, in line with analysts' predictions.

Investors evidently were hoping Cisco would provide more compelling signs of a resurgent economy, The company's stock shed 39 cents, or nearly 2 percent, to $20.74 in extended trading, surrendering some of the recent gains that had propelled the shares to a two-year high earlier this week.

As he nears retirement, Chambers, 63, is trying to establish Cisco as the go-to place for a wide range of technology products and services that help power the Internet, run data centers, deliver video and connect wireless devices.

The diversification appears to be paying off, with Cisco's data center, wireless and video service operations all showing robust growth during the most recent quarter. Routers were a sales laggard as revenue from that product declined 6 percent from a year earlier.

Cisco earned $3.1 billion, or 59 cents per share, during a three-month span ending Jan. 26. That represented a 44 percent increase from $2.2 billion, or 40 cents per share, in the previous year.

The results for Cisco's fiscal second quarter received a big boost from tax benefits and credits totaling $926 million, or 17 cents per share. Even without those one-time gains, the company earnings still would have been slightly better than the previous year.

Excluding the tax lift and certain accounting charges, Cisco said it earned 50 cents per share. That was 2 cents per share above the average estimate of analyst surveyed by FactSet.

Revenue edged up 5 percent to $12.1 billion, in line with analyst forecasts.