Cisco Profit in Line as Web Traffic Drives Demand

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Aug. 14 (Bloomberg) -- Cisco Systems reported fiscal fourth-quarter profit and sales in line with estimates as surging Internet traffic from smartphones and tablets lift demand for the company’s products. Cory Johnson reports on Bloomberg Television's "Street Smart." (Source: Bloomberg)

It up.

If that's in fact what they were doing.

Surely he's just as guilty as the other two.

We could debate this all day.

But we won't. cisco results are out.

The analysts are so carefully guided by their noses.

The analysts got it bet p right again.

The year-over-year growth, that's more important.

The company did $12.4 billion in sales.

That's 11% higher than the last year.

But the net income story, i think, is more interesting.

The adjusted net income, that strips out a lot of things, stock compensation and a lot of other things.

The net income for this company is $2.8 billion compared to $1.8 billion a year ago.

That's a 57% increase in net income in a year-over-year basis.

The company is selling 11% more stuff, it's making a whole lot more money in doing so.

We see a big gain in net income.

Earnings per share up 58% reflects a decline in share buy back.

But a quarter from cisco that's strong may show a lot of resilience to the stuff they're showing in the i.t. economy.

I would note that made our screen a very cheap stocks.

You take the cash off of the balance sheet in cisco, it's trading, again -- ex-cash, 9.7 times earnings.

It's cheap.

It's growing earnings according to tanlists at 9%. yeah.

Who uses that cash?

They use the cash like stock reform in the history of silicon valley.

They're using the shares, using cash to buy back shares and we saw that a lot in this quarter as well.

Cory johnson.

Barry, a comment?

Thank you.

What do you got?

I was going to ask cory about the -- about cisco's core u.s. business.

To me, that was one of the first significant data points that capital spending was improve in the last earnings report.

Short answer is i haven't been through the entire filing.

I will do that.

A lot more on bloomberg west as well.

These guys are going to cover it well, i'm sure.

You go dig

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