Cisco's 1Q Net Grows 17.7%, Exceeds Forecasts

By FOXBusiness

Cisco Systems (NASDAQ:CSCO) revealed a 17.7% jump in fiscal first-quarter earnings on Tuesday as the tech giant managed to exceed Wall Street’s expectations despite the lackluster global economy.

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The encouraging results helped drive Cisco’s slumping stock price 3% higher in after-hours action.

The blue-chip tech company said it earned $2.1 billion, or 39 cents a share, last quarter, compared with a profit of $1.8 billion, or 33 cents a share, a year earlier.

Excluding one-time items, the company logged EPS of 48 cents, surpassing forecasts from analysts by two pennies.

Cisco said its net sales increased 5.5% to $11.9 billion, compared with the Street’s view of $11.77 billion.

CEO John Chambers said in a statement that the quarterly results show Cisco’s “vision and strategy are working.

"Our innovation engine, operational discipline and ongoing evolution are enabling us to differentiate in the market,” Chambers said.

Shares of San Jose-headquartered Cisco rallied 3.03% to $17.38 in extended trading, putting them on pace to cut their 2012 decline of nearly 7%.