Cisco CEO: Our Momentum In The Market Is Above What The Market Is Anticipating
Cisco Systems, Inc. (NASDAQ: CSCO) reported better-than-expected third quarter numbers post the closing bell on Wednesday.
John Chambers, chief executive officer of Cisco Systems, was on Bloomberg TV Thursday to weigh in on the company’s earnings and to elaborate on where the growth came from.
Momentum Above Expectations
“Yesterday was extremely strong quarter for us in terms of positioning. We overachieved in terms of our key goals at 5 percent on revenue,” Chambers said. “Gross margins were extremely good at 62.5. Earnings per share were a penny above the Street expectations.”
“What that showed is our momentum in the market is above what the market is anticipating. And 11 out of 12 sell-side analysts came up and raised their price targets because of our growth opportunities.”
He continued, “What we're seeing is, we saw good growth in over 70 percent of our business, public sector was up 7 percent, global commercial was up 6 percent, global enterprise was up 7 percent. U.S. enterprise, Brian Marlier’s group here was up 21 percent, where we have changed not just our selling measurement, but instead of selling boxes, we are selling outcomes.”
“And that pipeline looks really, really good. We said yesterday 1,200 opportunities, $3.7 billion in pipeline. That’s up dramatically just one and two quarters ago. So, it shows the transition that we are making as a company is going well,” Chambers said.
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