Cisco Systems Shares Up 6% On Strong Earnings, Upbeat Outlook

(RTTNews) - Shares of Cisco Systems Inc. (CSCO) gained 6 percent in extended session on Wednesday after the company reported a profit and revenues for the fourth quarter that trumped Wall Street estimates. The Silicon Valley giant also provided a strong first-quarter outlook.

The San Jose, California-based networking-equipment maker reported fourth-quarter profit of $3.80 billion or $0.81 per share, up from last year's profit of $2.42 billion or $0.48 per share.

Adjusted earnings for the quarter were $0.70 per share, up from $0.61 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.69 per share for the quarter.

Revenues for the quarter grew 6 percent to $12.84 from $12.13 billion last year. Analysts had a consensus revenue estimate of $12.77 billion for the quarter.

"We had a very strong finish to a great year and generated our highest quarterly revenue of $12.8 billion," said CEO Chuck Robbins. "Our results demonstrate a combination of strong customer adoption of our latest innovations, the ongoing value customers see in our software and subscription offerings, and excellent execution across our customer segments and geographies."

Looking forward to the first quarter, Cisco expects adjusted earnings of $0.70 to $0.72 per share with revenue growth of 5 to 7 percent. Analysts currently expect earnings of $0.69 per share, with revenue growth of 3.90 percent.

CSCO closed Wednesday's trading at $43.86, down $0.14 or 0.32%, on the Nasdaq. The stock, however, gained $2.87 or 6.32% in after-hours trading.