Technology giant Cisco Systems (CSCO) has reported third-quarter financial results that beat Wall Street forecasts across the board.
The Silicon Valley-based company, which makes hardware, software, and telecommunications equipment reported earnings per share (EPS) of $0.91 U.S., which surpassed the $0.87 U.S. expected on Wall Street.
Revenue in the quarter totaled $13.84 billion U.S., which beat the $13.77 billion U.S. expected among analysts. However, Cisco’s sales declined for a fourth consecutive quarter, falling 6% from a year earlier.
Management said that the company’s networking revenue dropped 23% to $6.75 billion U.S. in the quarter, slightly below the $6.8 billion U.S. consensus of analysts.
That decrease was partially offset by Cisco’s security revenue, which doubled to $2.02 billion U.S. during Q3 and topped consensus forecasts of $1.93 billion U.S.
Cisco also reported that orders from large-scale clients for artificial intelligence (A.I.) infrastructure surpassed $300 million U.S. in the quarter.
Looking ahead, Cisco lifted its full-year guidance to between $3.60 U.S. and $3.66 U.S. in earnings, and $55.30 billion U.S. to $56.30 billion U.S. in revenue.
That guidance is up from a previous forecast of $3.52 U.S. to $3.58 U.S. in EPS and $55 billion U.S. to $56.2 billion U.S. in revenue.
Analysts had expected earnings for the year of $3.58 U.S. a share on $55.89 billion U.S. in revenue.
The stock of Cisco is down 4% immediately after its Q3 print. So far in 2024, the share price has gained 17% to trade at $59.18 U.S.