Cisco rises aftermarket as 4Q results top estimates

Looking ahead on a three to five year basis, Wall Street is expecting earnings of $7.86 per share on the stock.

In an interview following fiscal fourth-quarter earnings, CFO Kelly Kramer said the San Jose-based Cisco is waiting for a change to tax laws to bring the majority of its $60.4 billion in cash back to the U.S.

The company’s net income rose to $2.32 billion, or 45 cents per share, in the quarter ended July 25 from $2.25 billion, or 43 cents per share, a year earlier.

Cisco Systems, Inc.’s (NASDAQ:CSCO) stock rallied as much as 4% in pre-market trading today, after the company reported strong results for the fourth fiscal quarter.

It’s also worth noting that Cisco was rumored to be interested in buying the $8 billion security company FireEye in May, although then-Cisco CEO John Chambers shot down those rumors immediately.

Here’s how Robbins put it on the earnings release: “I’m particularly pleased with the strong growth in deferred revenue, which shows we are very effectively driving our business to a more predictable software-based model, at the same time as growing revenues and earnings”.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings results on Wednesday, August 12th.

Analysts expected net income of 56 cents per share and $12.66 billion in revenue, according to Zacks Investment Research. The company earned $12.14 billion during the quarter, compared to analyst estimates of $12.07 billion. Sales in the Americas increased 7 percent, while the both EMEA and APJC regions were flat. Collaboration – its business of selling software like WebEx and other similar products rose 14 percent to almost $1.1 billion.

Cisco said revenue from other geographies declined marginally. “Given a string of quarters marked by consistent execution and encouraging traction around Cisco’s software- defined networking-related (SDN) initiatives, combined with an attractive valuation (i.e., 8.9x our CY:16 EPS estimate, ex-cash) and a dividend yield of 3%, we believe investors will continue to warm up to Cisco”.

Cisco Systems, Inc. (NASDAQ:CSCO) said Friday that fourth quarter revenue in its service provider video unit fell 7%, compared with a 5% drop in the third period.

Cisco has been on an acquisition tear recently, and it doesn’t seem like it’ll slow down any time soon. It paid a combined $4.1 billion in dividends during the year. Consensus was for 56 cents on $12.65 bil.

Frost & Sullivan said data center revenues could fall below consensus after some softness in Q2 and there could be further divestitures, after the sale of the Connected Devices Division to Technicolor announced in late July.