Cisco shares rise after results beat Wall Street expectations
11 Aug 2011
Cisco Systems chief executive John Chambers gave Wall Street a lot to cheer for the first time in over a year with the quarterly results the company posted yesterday.
While questions regarding whether recent tough measures for return of the Silicon Valley giant to strong growth would remain, the long-serving CEO may now be breathing easy with investors pushing the company's shares as much as 10 per cent higher in after-hours trading.
The global leader in internet networking equipment had projected increase in revenue by 1 to 4 per cent this quarter as against the year ago, after it posted, quarterly results yesterday that moderately beat Wall Street's scaled-back expectations.
According to analysts, the results and the forecast were early signs that tough measures for returning the Silicon Valley giant to expansion -- including layoffs and asset sales -- were paying off.
It also pointed to demand from governments and corporations for networking might not be as bad as feared.
Some analysts had feared Cisco would go the way of Juniper Networks Inc and Brocade Communications Systems Inc in slashing results forecasts. Wednesday after-hours trade saw Brocade's stock rise 3.6 per cent at $3.49.