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Strong growth in Cisco's chambers

The departure of Cisco chief John Chambers marks the end of an era for the systems specialist
May 15, 2015

News that veteran Cisco (CSCO) chief John Chambers will step down this summer threatened to overshadow its robust third-quarter results. The US-listed systems specialist posted good growth in its key routing and switching businesses. That fuelled an 18 per cent rise in nine-month operating income to $7.89bn (£5bn).

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New offerings drove sales of Cisco's services and products up 4 and 5 per cent respectively. Management highlighted strong order growth in enterprise, public and commercial markets, but bemoaned weakness in carrier spending and tepid trading in China, Russia and other emerging markets.

Broker Cantor Fitzgerald expects full-year pre-tax profit of $14.42bn, giving EPS of 2.18¢, rising to $15.05bn and 2.30¢ in 2016 (from $13.71bn and 2.06¢ in 2014).