Cisco's Revenue Rises as Investors Weigh Possible Tariff Effects
15 Mai 2019 - 11:21PM
Dow Jones News
By Maria Armental
Networking giant Cisco Systems Inc. reported quarterly results
that beat Wall Street targets despite higher tariffs from a
U.S.-China trade clash.
Cisco, considered a proxy for high-tech hardware demand, is
being closely watched for how it has navigated the escalating trade
dispute between the two countries. But Chief Executive Chuck
Robbins has said the company has largely evaded financial damage
from tariffs by raising prices.
The U.S. increased tariffs on $200 billion of Chinese goods to
25% last week, and China plans to increase levies on $60 billion in
U.S. imports starting June 1.
On Wednesday, Cisco said its profit in the quarter ended April
27 rose 13% to $3.04 billion, or 69 cents a share. On an adjusted
basis, profit rose to 78 cents a share from 66 cents a share a year
earlier.
Revenue in Cisco's fiscal third quarter rose 4% to $12.96
billion.
Cisco had projected an adjusted profit of 76 cents to 78 cents a
share with revenue increasing 4% to 6% from a year earlier, while
analysts surveyed by FactSet expected an adjusted profit of 77
cents a share on $12.89 billion in revenue.
Gross profit margin improved to 63.1% from 62.3% a year
earlier.
This quarter, Cisco projected adjusted profit of 80 cents to 82
cents a share with revenue increasing 4.5% to 6.5%. That compares
with analysts' projected 81 cents a share and revenue rising about
3% to $13.29 billion.
Shares in Cisco rose 3.2% to $54.11 in after-hours trading.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
May 15, 2019 17:06 ET (21:06 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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