By Maria Armental
Quarterly results at Cisco Systems Inc. beat Wall Street's revenue and adjusted profit projections, but the networking-equipment giant gave a disappointing forecast for the current quarter.
Shares fell 6.6% to $47.10 in after-hours trading.
Profit for the quarter ended July 27 fell 42% to $2.21 billion, or 51 cents a share. On an adjusted basis, profit rose to 83 cents a share from 70 cents a share a year earlier.
Revenue in the fiscal fourth quarter rose 4.6% to $13.43 billion.
Cisco had projected fourth-quarter profit of 66 cents to 71 cents a share, or 80 cents to 82 cents as adjusted, and a revenue increase of 4.5% to 6.5%.
Analysts surveyed by FactSet expected 71 cents a share, or 81 cents as adjusted, and $13.39 billion in revenue.
Gross profit margin improved to 63.9% from 61.7% a year earlier.
This quarter, Cisco anticipates 80 cents to 82 cents a share in adjusted profit with revenue flat to up 2% from the year earlier. That compares with analysts' projected 83 cents a share and $13.39 billion in revenue, which would be an implied 2.5% increase from last year's reported $13.07 billion.
Cisco is considered a proxy for high-tech hardware demand, and analysts have been watching how it is navigating a trade dispute between the U.S. and China.
Company officials have said Cisco, which outsources all of its manufacturing, has largely offset financial damage from tariffs by raising prices and moving contract manufacturing away from China.
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