Cisco Leads Networking and Telecom Stocks In Outperforming the Nasdaq

Cisco Systems (NASDAQ:CSCO) reported its fourth quarter results after markets closed Wednesday, and the company’s stock has since climbed 16.58%, more than erasing their losses this month, though still down 20% for the year to date.

Cisco (NASDAQ:CSCO) reported that net income fell from $1.94 billion (33 cents a share) a year earlier, to $1.23 billion (22 cents a share) in its last quarter, a decline of 36.3%, while revenue climbed 3.3% to $11.2 billion. However, the company’s adjusted net income came to 40 cents a share, by that measure beating Wall Street’s estimates of 32 cents a share. The company also beat revenue estimates of $10.97 billion.

While Cisco’s (NASDAQ:CSCO) net income has fallen in each of the last three quarters, the company has topped analysts’ estimates in each of the last four quarters. Gross margins have been consistently shrinking for five straight quarters, down 1.4% in the most recent quarter from the year-earlier period.

As Cisco’s stock rallies on its better-than-expected earnings report, so too do its competitors, with many networking and telecom hardware stocks strongly outperforming the Nasdaq.

Stocks to Watch: Juniper Networks (NYSE:JNPR) +6.68%, JDS Uniphase Corporation (NASDAQ:JDSU) +9.56%, Cavium Inc. (NASDAQ:CAVM) +13.85%, NetLogic Microsystems (NASDAQ:NETL) +10.91%, Acme Packet (NASDAQ:APKT) +9.47%, PMC-Sierra (NASDAQ:PMCS) +3.81%, Oplink Communications (NASDAQ:OPLK) +7.03%, Alcatel-Lucent (NYSE:ALU) +9.94%, F5 Networks (NASDAQ:FFIV) +5.27%, Brocade Communications Systems (NASDAQ:BRCD) +5.93%.