Cisco's 1Q revenue falls below estimates
Cisco's fiscal first-quarter revenue grew slower than expected and net income declined, which sent the technology company's stock lower in extended trading.
Cisco Systems Inc. said Wednesday that it earned $2 billion, or 37 cents per share, during the quarter ended Oct. 26. That's down 5 percent from $2.09 billion, or 39 cents per share, a year earlier.
Revenue grew 2 percent to $12.09 billion from $11.88 billion.
Adjusted earnings, which exclude acquisition-related costs, stock-based compensation expense and other items, totaled $2.9 billion, or 53 cents per share—2 cents above Wall Street's expectations.
Analysts expected higher revenue of $12.35 billion, according to a poll by FactSet.
Cisco also expanded its share repurchase program by $15 billion, bringing the total authorization for buybacks to $16.1 billion.
"While our revenue growth was below our expectation, our financials are strong, our strategy is strong and our innovation engine is executing extremely well," said CEO John Chambers in a statement.
Cisco's performance is widely regarded as a bellwether for the technology industry because company cuts a broad swath, selling routers, switches, software and services to corporate customers and government agencies, and it reports earnings outside of the regular calendar year.
Shares of San Jose, California-based Cisco fell 87 cents, or 3.6 percent, to $23.13 in after-hours trading. The stock had closed regular trading up 27 cents at $24.
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