Cisco’s third quarter earnings of 30 cents a share excluding items topped Wall Street estimates by 5 cents a share. Revenue of $8.2 billion was down 16.6 percent from a year ago. The takeaway: Cisco has been savvy about managing its costs. Chambers noted that the company is close to exceeding its “stress goal” of lowering its annual expenses by $1.5 billion.
Nevertheless, Cisco’s outlook for the fourth quarter was better than expected. JMP Securities analyst Samuel Wilson said that Cisco quarter was like putting air into a flat tire. When a rebound does eventually occur Cisco will be rolling.
Cisco’s third quarter earnings were solid courtesy of savvy expense management, but CEO John Chambers refrained from calling a bottom. A deep dive into Cisco’s customer trends reveal why: Most of the company’s growth markets—India, emerging markets and advanced technologies–are still reeling.
Nevertheless, Cisco’s outlook for the fourth quarter was better than expected. JMP Securities analyst Samuel Wilson said that Cisco quarter was like putting air into a flat tire. When a rebound does eventually occur Cisco will be rolling.
Cisco’s third quarter earnings were solid courtesy of savvy expense management, but CEO John Chambers refrained from calling a bottom. A deep dive into Cisco’s customer trends reveal why: Most of the company’s growth markets—India, emerging markets and advanced technologies–are still reeling.
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