Cisco beat earnings and revenue estimates after the close on Tuesday, but investors were looking for more than the company's usual "penny above" routine.
Shares of Cisco fell 5% after reporting earnings of 18 cents a share, topping estimates by a penny, and revenues of $5.4 billion exceeded $5.3 billion forecasts. The company said it expects 1-3% sequential revenue growth for the April quarter - above analyst estimates - but after blow-out results from Nortel and Juniper, investors may have been looking for more.
CEO John Chambers said "it is becoming increasingly clear that the global economy is improving." UPDATE 4-Cisco quarterly profit beats estimates, shares up | Technology ::
UPDATE 4-Cisco quarterly profit beats estimates, shares up Autodesk profit tops forecast; stock jumps. More Industry News Most Viewed Business Articles
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Also after the close, Sina and WebEx beat estimates and raised guidance, and Ciena warned.
The broader market was modestly higher ahead of Cisco's results.
The Nasdaq rose 3 to 2066, the S&P 500 added 1 to 1136, and the Dow tacked on 6 to 10,505. Volume declined to 1.48 billion shares on the NYSE, and 1.86 billion on the Nasdaq. Advancers led by a few issues on the NYSE, while decliners led 16-14 on the Nasdaq. Downside volume was 44% on the NYSE, and 39% on the Nasdaq. New highs-new lows were 224-4 on the NYSE, and 142-7 on the Nasdaq.
Sohu plunged 20% on a warning, and Amazon.com continued to slide in the wake of its earnings report last week.
Chip stocks survived a sector downgrade from Goldman Sachs, with Applied Materials, Novellus and KLA-Tencor only modestly changed on the day. Goldman said the stocks could peak before the cycle does.
J2 Global and Quantum fell on their results.
SanDisk lost 8% on competitive concerns.
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