Cisco Systems says earnings rose 18 percent in the latest quarter as it gained more solid footing after warning earlier this year of an abrupt slowdown in technology spending. Investors were pleasantly surprised by the news, sending Cisco shares up 7 percent in after-hours trading.
Cisco made $2.1 billion, or 39 cents per share, in its fiscal first quarter, from August to October. That compares $1.8 billion, or 33 cents per share, in the same period a year ago.
Excluding the cost of stock-based compensation and certain other items, Cisco would have earned 48 cents per share. On that basis, Cisco's earnings were 2 cents above the average analyst estimate, according to FactSet.
Revenue rose nearly 6 percent, also topping estimates.
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