Cisco Posts Higher-than-expected Results, Looking for Trump’s Tax Reform
Shares of Cisco Systems Inc. surged more than 2% in after-hour trading on Wednesday after the networking giant reported higher-than-expected quarterly revenue and profit for the three-month period ended January 28th.
Cisco posted fiscal second-quarter profit of $2.35 billion, or 47 cents a share, on sales of $11.58 billion. Adjusted by share-based compensation, discontinued businesses and other effects, Cisco’s earnings reached 57 cents a share, slightly better than forecasts calling for adjusted earnings of 56 cents a share on sales of $11.55 billion.
While net income experienced a decline compared with that of last year’s period which was $3.15 billion, or 62 cents per share, revenue also fell for the fifth consecutive quarter to $11.58 billion, down 2.9% from a year earlier.
However, Cisco executives stated that they were optimistic about the upcoming repatriation tax holiday when it may get benefit from U.S. President Trump’s tax reform.
Cisco expects an adjusted profit of 57 cents-59 cents per share for the current quarter, in line with analysts’ forecasts for a profit of 58 cents per share.
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