Cisco Sales, Profit Top Estimates on Mobile Demand

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May 14 (Bloomberg) -- Cisco’s third-quarter sales and profit topped analysts’ estimates, as rising data traffic from smartphones and tablets fueled demand for networking equipment while the company cut costs. Rhino Trading's Michael Block and Bloomberg's Cory Johnson and Olivia Sterns take a look at the numbers on Bloomberg Television's "Street Smart." (Source: Bloomberg)

I'm just adding some of the numbers and to my model here.

Yes, the analysts underestimated the results from the company, but i think if any company can guide analyst the way they want to, they certainly do.

$11 billion in revenue, a 5% decline.

Consecutive quarters of decline for them.

We saw revenues dropped eight percent on a year-over-year basis.

Adjusted earnings per share of $.51 after all kinds of adjustment, not the least of which stock compensation.

This helps to boost the earnings-per-share number and they bought back $2 billion worth of stock.

90 million shares outstanding no longer for cisco.

A revenue decline in consecutive quarters despite all the acquisitions that they've done, really keeping the heat on john chambers as he tries to execute a turnaround therefore cisco.

I'm going to dig into some of these numbers and earnings-per-share above the analyst estimates.

Fundamentally, it's a smaller company today than it was one year ago.

And that's the challenge we are seeing now with all of these big tech plays.

They are really struggling.

Ibm, oracle.

Making the point that 50% of the business will be outside of pcs, corey.

He considers this quite a triumph.

Just last year, 70% of the company's business was pc.

You can see it's changing and they are making an effort to try and change it but the reality remains some of these big tech players have challenges.

Again, some of the big leaders in technology -- amd is not a leader.

Some of the big leaders -- ibm, cisco, oracle -- they are all spending hundreds of millions of dollars, even billions, and they have falling revenue year-over-year and you see a fundamental shift in the types of technology being used in moving away from the strength that has led technology over the course of the last 30 years but no more.

We spoke to one analyst who said cisco is facing the problem of being the innovator dilemma.

They created the category and now there's all this new competition so they are now up against huawei, juniper networks.

They are losing revenue year-over-year.

Like all of these companies, they are still doing some kind of financial engineering.

Financial engineering, what do you know?

Any concerns?

A great segue.

Now it's not a multiple stock and expectations are low.

When you get through this crazy volatility here, you think about which stocks you want to own for the long term, maybe more dependable and boring but able to make a these acquisitions, lots of cash on hand to give values back to shareholders.

Names like this could end up being the leaders over the next one to three years when i think about what i want to own long term up 3.97% in the

This text has been automatically generated. It may not be 100% accurate.


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