RealTime IT News

Cisco Tops Estimates

Cisco beat earnings and revenue estimates after the close on Tuesday, but investors were looking for more than the company's usual "penny above" routine.

Shares of Cisco fell 5% after reporting earnings of 18 cents a share, topping estimates by a penny, and revenues of $5.4 billion exceeded $5.3 billion forecasts. The company said it expects 1-3% sequential revenue growth for the April quarter - above analyst estimates - but after blow-out results from Nortel and Juniper , investors may have been looking for more.

CEO John Chambers said "it is becoming increasingly clear that the global economy is improving."

Also after the close, Sina and WebEx beat estimates and raised guidance, and Ciena warned.

The broader market was modestly higher ahead of Cisco's results.

The Nasdaq rose 3 to 2066, the S&P 500 added 1 to 1136, and the Dow tacked on 6 to 10,505. Volume declined to 1.48 billion shares on the NYSE, and 1.86 billion on the Nasdaq. Advancers led by a few issues on the NYSE, while decliners led 16-14 on the Nasdaq. Downside volume was 44% on the NYSE, and 39% on the Nasdaq. New highs-new lows were 224-4 on the NYSE, and 142-7 on the Nasdaq.

Sohu plunged 20% on a warning, and Amazon.com continued to slide in the wake of its earnings report last week.

Chip stocks survived a sector downgrade from Goldman Sachs, with Applied Materials , Novellus and KLA-Tencor only modestly changed on the day. Goldman said the stocks could peak before the cycle does.

J2 Global and Quantum fell on their results.

SanDisk lost 8% on competitive concerns.

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