CSCO Cisco Systems Inc

By Maria Armental 

Networking giant Cisco Systems Inc. reported quarterly results that beat Wall Street targets despite higher tariffs from a U.S.-China trade clash.

Cisco, considered a proxy for high-tech hardware demand, is being closely watched for how it has navigated the escalating trade dispute between the two countries. But Chief Executive Chuck Robbins has said the company has largely evaded financial damage from tariffs by raising prices.

The U.S. increased tariffs on $200 billion of Chinese goods to 25% last week, and China plans to increase levies on $60 billion in U.S. imports starting June 1.

On Wednesday, Cisco said its profit in the quarter ended April 27 rose 13% to $3.04 billion, or 69 cents a share. On an adjusted basis, profit rose to 78 cents a share from 66 cents a share a year earlier.

Revenue in Cisco's fiscal third quarter rose 4% to $12.96 billion.

Cisco had projected an adjusted profit of 76 cents to 78 cents a share with revenue increasing 4% to 6% from a year earlier, while analysts surveyed by FactSet expected an adjusted profit of 77 cents a share on $12.89 billion in revenue.

Gross profit margin improved to 63.1% from 62.3% a year earlier.

This quarter, Cisco projected adjusted profit of 80 cents to 82 cents a share with revenue increasing 4.5% to 6.5%. That compares with analysts' projected 81 cents a share and revenue rising about 3% to $13.29 billion.

Shares in Cisco rose 3.2% to $54.11 in after-hours trading.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

May 15, 2019 17:06 ET (21:06 GMT)

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