TECH - Cisco Surpasses Estimates As It Finally Gets Some AI Action Despite Steepest Revenue Drop Since 2009 | Benzinga
On Wednesday, Cisco Systems Inc (NASDAQ: CSCO) reported its fiscal third quarter results and both its top and bottom-line surpassed Wall Street’s estimates. However, this does not change the fact that revenue suffered its steepest decline in 15 years. Like in its previous quarterly report, Cisco attributed the sales softness by consumers setting up the equipment they received during earlier quarters, stating that it expects such installations to be mostly done by the end of the fiscal year. Despite the revenue decline, its stock still went up 8% during extended trading.
Fiscal Third Quarter Highlights
For the quarter ended on April 27th, Cisco reported revenue contracted about 13% as it amounted to $12.7 billion, still surpassing LSEG’s estimate of $12.53 billion.
Adjusted earnings amounted to 88 cents per share, also topping LSEG’s consensus of 82 cents. But net income tanked 41% to $1.89 billion, or 46 cents per share.
Networking revenue which makes the majority of sales also melted as it dropped by 27% to $6.52 ...