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Cisco Beats Fourth Quarter Earnings Estimates

- By Julie Young

Cisco (CSCO) reported its fourth quarter and full year results on Wednesday, Aug. 17. The technology company reported a strong fourth quarter, beating estimates for revenue and earnings per share. Revenue of $12.64 billion, beat estimates by $70 million. Earnings per share of 63 cents beat estimates by three cents.

Revenue for the quarter of $12.6 billion was up 2% from the comparable quarter. Revenue for the year was up 3% at $48.7 billion. For the fourth quarter and full year, sales from the firm's security business were a key factor. For the fourth quarter, the firm's security revenue increased 16%. For the year, security revenue was up 13%.

Earnings for the quarter also improved. Cisco reported net income of $3.2 billion for the fourth quarter, an increase of 7%. Earnings per share for the fourth quarter improved 9%. For the full year, net income was $12.0 billion, an increase of 7%. Earnings per share for the year were $2.36, an increase of 8%.

Guidance from Cisco for the first quarter shows the company's earnings slowing slightly. Revenue is expected to increase as much as 1% from the comparable quarter. Earnings per share are also expected to increase just slightly from 59 cents with the high range of EPS for the first quarter at 60 cents.

In a CNBC report Thursday, Cisco's Chief Executive Officer, Chuck Robbins, had the following comments.

Disclosure: I do not own any shares of Cisco.

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This article first appeared on GuruFocus.