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Cisco Systems (CSCO, $49.37) beat quarterly revenue estimates as a COVID-19 recovery in China eased supply chain pressures and helped the company meet demand for its networking hardware. The stock rose about 4.5% in extended trading.
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Its revenue came in at $13.10 billion, vs. $12.79 billion as expected by analysts, while its EPS stood at $0.83 per share, adjusted, vs. $0.82 per share. Net income decreased by 6% to $2.82 billion as the company’s adjusted gross margin narrowed to 63.3% from 65.3% in the previous quarter. Analysts had predicted 64.7%.
Why it matters
While Cisco’s numbers generally topped estimates, the company is still struggling to grow as the technology world rapidly shifts to cloud and subscription software, and away from buying physical boxes. The company’s stock price is down 24% this year, while the Nasdaq has fallen 17%.
