Cisco Systems delivered better than expected earnings and sales after the close on Tuesday, but the company’s forward guidance left some a little disappointed.
Cisco’s April quarter sales grew 18% to $7.32 billion, helped in part by $407 million in revenues from newly acquired Scientific-Atlanta, beating $7.17 billion estimates. Non-GAAP earnings of 29 cents a share were 3 cents better than expected.
“Cisco’s third quarter was marked by record revenues and strong results in orders and earnings per share,” CEO John Chambers said in a statement. “We saw a number of highlights this quarter, notably the growth of our U.S. and emerging markets, the continued strength of the commercial market segment and advanced technologies, and the balanced performance across most of our key product categories.”
On the conference call, Chambers noted that some of Cisco’s competitors have experienced weakness, but he said Cisco’s business momentum is increasing. But the company’s guidance for the July quarter left room for disappointment. Cisco said it expects July quarter sales of $7.76-7.98 billion, compared to $7.87 billion estimates.
Cisco shares slipped 1% in after-hours trading.
Blue chip stocks rose Tuesday on strength in GM , while tech stocks lost ground on a warning from Dell
. The Federal Reserve’s decision on interest rates is due out Wednesday afternoon, and traders are expecting “one and done” — one rate hike tomorrow and then a pause.
The Nasdaq lost 6 to 2338, the S&P 500 added half a point to 1325, and the Dow rose 55 to 11,539, just 83 points from the index’s all-time high. Volume was unchanged at 2.15 billion shares on the NYSE, and rose to 1.91 billion on the Nasdaq. Decliner led by a few issues on the NYSE, and 17-13 on the Nasdaq. Upside volume was 54% on the NYSE, and 35% on the Nasdaq. New highs-new lows were 270-72 on the NYSE, and 181-43 on the Nasdaq.
Blackboard , Ditech
and InPhonic
surged on their results.
Glenayre plunged on the loss of business from Sprint Nextel
.
Sonus lost 4% on its results.