EARNINGS: Cisco Systems’ Profit ROCKETS Higher for Third Straight Quarter

S&P 500 (NYSE:SPY) component Cisco Systems Inc. (NASDAQ:CSCO) reported its results for the fourth quarter. Cisco Systems is a multinational corporation engaged in the design, manufacturing, and sales of Internet Protocol-based consumer electronics, networking, and other services related to communications and information technology.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

Cisco Systems Inc. Earnings Cheat Sheet

Results: Net income for Cisco Systems Inc. rose to $1.92 billion (36 cents per share) vs. $1.23 billion (22 cents per share) in the same quarter a year earlier. This marks a rise of 55.6% from the year-earlier quarter.

Revenue: Rose 4.4% to $11.69 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cisco Systems Inc. fell short of the mean analyst estimate of 41 cents per share. Analysts were expecting revenue of $11.58 billion.

Quoting Management: “As a result of our strong performance, continued execution on our plan to deliver profitable growth, and commitment to shareholders, for the full fiscal year, we delivered revenue growth of 7% as well as a record year in revenue and earnings per share,” stated Cisco Chairman and CEO John Chambers. “Our strategy — delivering intelligent networks and technology architectures, built on integrated products, services and software platforms, to fuel our customers’ businesses — is proving the right long-term strategy for our success. There is no question that our industry and our world are evolving quickly and Cisco is squarely at the center of major technology market transitions — cloud, mobile, visual, virtual and social.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the third quarter, net income rose 19.8% and in the second quarter, the figure rose 43.5%.

Revenue has increased for four quarters in a row. Revenue increased 6.6% to $11.59 billion in the third quarter. The figure rose 10.8% in the second quarter from the year earlier and climbed 4.7% in the first quarter from the year-ago quarter.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the third quarter, it topped the mark by one cent, and in the second quarter, it was ahead by 5 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 42 cents a share to 40 cents over the last ninety days. At $1.63 per share, the average estimate for the fiscal year has fallen from $1.64 ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Is Disney’s Stock a Buy?

Here’s How to Invest According to Paul Ryan’s Philosophy>>

Is GE Stock a Buy, Sell, or Hold?