05:04 PM EDT, 05/15/2024 (MT Newswires) -- Cisco Systems ( CSCO ) late Wednesday reported fiscal third-quarter results that fell year-over-year but topped Wall Street's estimates as demand conditions stabilized.

Adjusted per-share earnings fell to $0.88 during the three months ended April 27 from $1 a year earlier. That compared with the $0.82 consensus estimate on Capital IQ. Revenue declined 13% to $12.7 billion but topped the Street's $12.63 billion view.

The networking, cloud and cybersecurity solution provider's stock was up 7.6% in after-hours trading.

Product sales decreased 19% year over year to $9.02 billion, weighed down by networking, while services rose 6% to $3.68 billion. Cybersecurity firm Splunk, which was acquired by Cisco ( CSCO ) in March, contributed $413 million to total revenue in the fiscal third quarter. Total annualized recurring revenue advanced 22% to $29.2 billion, including $4.2 billion from Splunk.

"Customers are consuming the equipment shipped over the last few quarters in line with our expectations and we are seeing stabilization of demand as a result," Chief Financial Officer Scott Herren said in a statement. "The addition of Splunk to our product line will be a catalyst for further growth."

Cisco ( CSCO ) now forecasts full-year adjusted EPS of $3.69 to $3.71, compared with its prior projection of $3.68 to $3.74. Cisco ( CSCO ) expects revenue between $53.6 billion and $53.8 billion, compared with the previous $51.5 billion and $52.5 billion range. Analysts polled by Capital IQ expect normalized EPS of $3.64 and revenue of $53.54 billion.

For the fourth quarter, the company projects adjusted EPS of $0.84 to $0.86 on estimated revenue between $13.4 billion and $13.6 billion. The consensus estimates are $0.84 and $13.54 billion, respectively.

Cisco ( CSCO ) said it appointed Gary Steele, former Splunk CEO, to serve as president of go-to-market, effective immediately. Steele will continue to lead Splunk through the integration process.

Chief Customer and Partner Officer Jeff Sharritts will depart but remain with the company until mid-July.

Price: 53.05, Change: +3.38, Percent Change: +6.80