But stock sinks as No. 1 maker of Internet gear reports sales just barely below forecasts.
November 9, 2004: 4:31 PM EST
NEW YORK (CNN/Money) - Cisco Systems Inc. reported higher earnings Tuesday that met Wall Street forecasts, but the results appeared to disappoint investors.
The San Jose-based company, the world's No. 1 maker of routers and switches used to connect computers to the Internet, said first-quarter net income jumped to 21 cents a share from 15 cents a share a year earlier.
Excluding one-time charges, Cisco's profits were also 21 cents a share, up from 17 cents a share in the year-ago quarter, and in line with analysts' estimates, according to surveys by Thomson First Call.
Cisco also said it would expand its stock buyback program by $10 billion.
Sales rose 17 percent to $6 billion, but that fell just a tad shy of analyst estimates of $6.02 billion.
Cisco CEO John Chambers had warned in August that revenues would be flat in the first quarter compared to fourth-quarter of 2004.
Wall Street reacted negatively to the news, and in after-hours trading, Cisco shares slipped more than 2 percent.
Cisco's earnings are considered a bellwether for the health of the tech sector as well as a key indicator of corporate sentiment, since its results depend on how aggressively companies are spending to upgrade technology.
O Clubeinvest.com informa que nenhuma da informação
aqui facultada deverá ser entendida como conselho ou recomendação
de qualquer tipo de transacção ou investimento.
