Cisco Systems Inc. reported quarterly results that topped Wall Street estimates Wednesday, while the networking company’s revenue forecast for the end of its fiscal year topped the analyst consensus.
reported fiscal third-quarter net income of $3.04 billion, or 69 cents a share, compared with a $2.69 billion, or 56 cents a share, in the year-ago period. Adjusted earnings were 78 cents a share. Analysts surveyed by FactSet had forecast earnings of 77 cents a share, while Cisco had forecast earnings of 76 cents to 78 cents a share.
Revenue rose to $12.96 billion from $12.46 billion in the year-ago quarter. Product revenue rose to $9.72 billion from $9.3 billion a year ago, and service revenue rose to $3.24 billion from $3.16 billion last year. Analysts had expected revenue of $12.89 billion, while Cisco had forecast revenue of $12.96 billion to $13.21 billion. Wall Street had forecast product revenue of $9.65 billion and service revenue of $3.22 billion.
For the fourth quarter, Cisco expects adjusted earnings of 80 cents to 82 cents a share on 4.5% to 6.5% year-over-year revenue growth, or $13.42 billion to $13.68 billion. Analysts had estimated earnings of 81 cents a share on revenue of $13.29 billion.
Cisco said it returned $7.5 billion to shareholders through share buybacks and dividends in the third quarter: $1.5 billion though dividends and $6 billion in the buyback of about 116 million shares at an average price of $52.14 a share. Cisco said it still has $18 billion in buyback authority remaining.
Cisco shares closed Wednesday up 0.8% at $52.44, while the Dow Jones Industrial Average
gained 0.5%, the S&P 500 index
rose 0.6%, and the tech-heavy Nasdaq Composite Index
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