Cisco proves growth is returning as earnings beat Street forecasts

CISCO Systems, the world’s biggest networking equipment maker, reported quarterly earnings per share that beat estimates, signalling that efforts to revive growth are beginning to pay off.

The company yesterday reported adjusted earnings of 43 cents per share for the fiscal first quarter ended 29 October, compared with the average analyst forecast of 39 cents.

Revenue rose to $11.3bn (£7.1bn) from $10.75bn a year earlier, versus the average forecast of $11.03bn.

“We weren’t expecting fireworks for this quarter. I knew the company would control costs efficiently and there's a little bit of revenue upside,” said BGC analyst Colin Gillis.

Cisco shares gained more than one per cent to $17.79 in extended trade after closing down 3.8 per cent at $17.61.

“Overall, the print looks clean with margin and operating profit upside relative to our estimates that are above the Street,” said Brian White of Ticonderoga Securities.

“This report reflects solid execution by the company in a very challenging market environment,” he added.