Cisco’s Upbeat Forecast Signals Strong Corporate Spending
- Americas region contributed most to growth; Asia declined
- Security unit sales surged 21%; hardware revenue up 5%
Photographer: David Paul Morris/Bloomberg
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Cisco Systems Inc. gave a bullish sales and profit forecast for the current period, a sign that corporations continue to spend on their computer networks despite concern that a trade dispute between China and the U.S. will slow global economic growth.
Sales in the fiscal fourth quarter will increase 4.5% to 6.5% from the same period a year earlier, the San Jose, California-based company said Wednesday in a statement. That indicates revenue of as much as $13.5 billion, compared with analysts’ average estimate of $13.29 billion. Adjusted profit will be 80 to 82 cents a share, in line with projections for 81 cents.