Shares of Cisco Systems (CSCO) – Get Report were falling after hours Wednesday after the company reported fourth-quarter earnings ahead of analyst expectations.
The company reported fourth-quarter revenue of $13.1 billion with non-GAAP earnings of 84 cents a share. Analysts were expecting the company to report fiscal fourth-quarter earnings of 83 cents a share, on par with the previous quarter's earnings, on revenue of $13.04 billion.
“We continue to see great momentum in our business as customers are looking to modernize their organizations for agility and resiliency,” said CEO Chuck Robbins. “The demand for Cisco technology is strong with our Q4 performance marking the highest product order growth in over a decade.”
The networking company was expected to top quarterly estimates this time around as sector rivals Arista Networks (ANET) – Get Report and Juniper Networks (JNPR) – Get Report both topped estimates in their releases.
However, the company's stock was falling after hours as the middle of its first-quarter earnings expectations were below expectations.
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Shares of the company Wednesday were down 0.9% to $54.64 in after hours trading. The stock closed down 1.5% to $55.15 in the regular trading session.
Cisco expects first-quarter earnings between 79 cents and 81 cents a share, compared to FactSet estimates of 81 cents per share.
Revenue for the quarter is expected to grow between 7.5% and 9.5% year-over-year, compared to estimates of 7.7% growth.
For the full year, Cisco expects earnings between $3.38 and $3.45 a share, compared to analyst estimates of $3.41 a share.
Recently, TheStreet's Jim Cramer said that Cisco would be a big beneficiary from the oversupply of DRAM chips and prices of the semiconductors usually fall sharply when there is an oversupply, helping Cisco's margins in the process as the company is a big DRAM buyer.
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