Cisco Systems (NASDAQ:CSCO) stock was rising in Thursday morning's deals after last night reporting strong 4Q earnings, ahead of market expectations.
The communications firm reported revenue of $15.2 billion for the quarter compared to the $15.05 billion expected by the Street, while its adjusted earnings per share came in at $1.14 versus $1.06 expected.
Double-digit growth in software revenue, product ARR and outstanding contracts led to greater visibility and predictability, according to the company.
Looking ahead, Cisco said it is anticipating slightly lower adjusted earnings per share of $1.02 to $1.04, but still ahead of the $0.99 expected by Wall Street analysts.
That may have spooked investors, though, with shares of Cisco losing 1.8% afterhours despite the earnings and revenue beat.
"We are seeing solid customer demand, gaining market share, and innovating in key areas like AI, security, and cloud,” Cisco CEO Chuck Robbins told investors in a statement. “This momentum gives us confidence in our ability to capture the many opportunities ahead."
At US$54.07 the stock was up US$1.11 or 2.1% in early deals.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas