Cisco Rallies After Upbeat Forecast Shows Spending Recovery
- Company reports a pickup in orders during the last quarter
- Cisco’s corporate customers had been slowing their orders
Cisco Systems headquarters in San Jose.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Cisco Systems Inc. gained about 5% in extended trading after giving a solid sales and profit forecast for the current quarter, indicating that customers are beginning to invest in their computer networks again.
Sales will be $13.4 billion to $13.6 billion in the fiscal fourth quarter, which ends in July, the company said in a statement Wednesday. That compares with an average analyst estimate of $13.5 billion. Excluding certain items, profit will be 84 cents to 86 cents a share, versus a prediction of 84 cents.