Cisco Forecast Aided by Pandemic-Fueled Online Traffic Surge
- Shares gain in extended trading following sales projection
- Recession may limit spending on corporate, government networks
Photographer: David Paul Morris/Bloomberg
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Cisco Systems Inc. gave a better-than-feared sales forecast, helped by a boom in remote work and online activity that is stoking demand for the company’s network equipment.
Revenue in the fiscal fourth quarter, which ends in July, will fall 8.5% to 11.5% from a year earlier, the San Jose, California-based company said Wednesday in a statement. At the mid point. that indicates revenue of about $12 billion, slightly more than analysts expected. Adjusted profit will be 72 cents to 74 cents a share, also ahead of analysts’ projections, according to data compiled by Bloomberg.