The latest earnings report from Cisco Systems, Inc. (CSC) narrowly beat Wall Street estimates, but shares of the company’s stock slipped after CEO John Chambers said the company will likely start off this year slowly and then pick up later in the year.
Cisco Systems, Inc. (NASDAQ:CSCO) has just announced its second fiscal quarter earnings, which beat Wall Street estimates. In spite of that, shares of the company’s stock are falling in after-hours trading on the NASDAQ, likely because Cisco’s CEO gave some cautionary guidance for the early part of this year.
Cisco Systems, Inc. (NASDAQ:CSCO) posted earnings of $3.1 billion or 59 cents per share for the quarter that ended Jan. 26. That’s an increase from $2.2 billion and 40 cents per share from the same time period a year ago.
The company’s revenue also increased slightly to $12.1 billion, a 5 percent increase from a year ago. Cisco’s adjusted earnings for its second fiscal quarter were $2.7 billion, or 51 cents per share. Consensus for Cisco Systems, Inc. (NASDAQ:CSCO) quarterly earnings was $12.07 billion in revenue and 48 cents per share, according to FactSet.
Cisco’s slightly better-than-expected earnings is good news for the IT sector as a whole. It indicates that corporate spending on technology gear isn’t lagging as much economists predicted. Economists typically use Cisco’s earnings to as a way to assess how the tech industry is doing as a whole because the company’s products cover such a broad range.
Shares of Cisco Systems, Inc. (NASDAQ:CSCO) slipped after CEO John Chambers told CNBC that he expects that the company will start off very slowly this year and then improve later this year. We’re waiting to hear more details about the company’s guidance for the rest of this year. Usually Cisco releases more guidance details on its investor call.
Cisco Systems, Inc. (NASDAQ:CSCO) recently bought out the Israeli company Intucell, which develops software for mobile carriers. That deal will be finalized in the third quarter of the company’s 2013 fiscal year, so we should hear more about it later this year.