Cisco Systems Inc. (NASDAQ: CSCO) released fiscal third-quarter financial results after markets closed Wednesday. The firm said that it had $0.79 in earnings per share (EPS) and $11.98 billion in revenue, compared with consensus estimates that called for $0.71 in EPS and $11.88 billion in revenue. The same period from last year had $0.78 in EPS and $12.96 billion in revenue.
Total revenue decreased 8% year over year, with product revenue down 12% and service revenue up 5%. Revenue by geographic segment was: Americas down 8%, EMEA down 7%, and APJC down 9%. Product revenue performance was led by growth in Security, up 6%. Infrastructure Platforms revenue was down 15 and Applications revenue was down 5%.
Deferred revenue was $18.6 billion, up 7% in total, with deferred product revenue up 17%. Deferred service revenue was up 1%.
Looking ahead to the fiscal fourth quarter, the company expects to see EPS in the range of $0.72 to $0.74 and revenues declining in the range of 8.5% to 11.5% year over year. Consensus estimates are calling for $0.71 in EPS and $12.07 billion in revenue for the coming quarter.
Chuck Robbins, board chair and CEO of Cisco, commented:
During this extraordinary time, our priority has been supporting our employees, customers, partners and communities, while positioning Cisco for the future. The pandemic has driven organizations across the globe to digitize their operations and support remote workforces at a faster speed and greater scale than ever before. We remain focused on providing the technology and solutions our customers need to accelerate their digital organizations.
Shares of Cisco closed Wednesday at $41.95, within a 52-week range of $32.40 to $58.26. The consensus analyst price target is $46.19. Following the announcement, the stock was initially up 3% at $43.30 in the after-hours session.