Cisco earnings exceed analysts’ expectations after cutting costs

 
City A.M. Reporter
US network specialist Cisco Systems last night reported higher quarterly revenue and earnings that beat average analyst estimates due to cost cuts and the company's broad product range.

First-quarter net income, excluding items, rose 10.6 per cent to $2.6bn, or 48 cents per share, compared with analysts’ average estimate of 46 cents a share as compiled by Thomson Reuters.

Revenue rose six per cent from the year-ago quarter to $11.9bn, compared with a Street view of $11.77bn.

Cisco’s shares rose 6.7 per cent to $17.98 in after-hours trading.

Analysts said the results were solid and better than anticipated.

“It’s largely due to a product mix – a larger shift to routing – and cost cutting. At first blush these are good numbers in a bad macro (environment),” said Mizuho Securities analyst Joanna Makris.

“This is better than expected. We have been thinking they would squeak by on the top line,” she added.

Brian Marshall, an analyst at ISI group, said the results “looked solid”.

“We delivered record results this quarter demonstrating our vision and strategy are working,” said John Chambers, head of Cisco.