NEW YORK (CNNMoney.com) - Cisco Systems posted solid numbers for the latest quarter Tuesday but some investors were disappointed in the company's sales forecast, sending the stock lower in after-hours trading.

The No. 1 maker of Internet gear reported earnings of 29 cents a share excluding items for its fiscal third quarter ended last month, up from 23 cents a year earlier. Sales jumped 18 percent to $7.3 billion.

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Both numbers topped average forecasts from industry analysts and Cisco (Research) initially rallied right after the report, but the stock turned lower after company officials issued what some investors saw as lukewarm guidance.

Erik Suppiger, a networking specialist at Pacific Growth Equities, called the stock's initial rally an "overly optimistic" reaction to the report.

In addition, CEO John Chambers issued a forecast that wasn't as bullish as some investors had hoped.

On a conference call with analysts, Chambers forecast revenue for the year of just over $28 billion, an increase of 14 percent from the year earlier and in line with analysts expectations for $28.2 billion.

But forecasts for the fourth-quarter were between $7.8 billion and $7.95 billion, slightly below expectations, although Chambers said "we're not in any way indicating we are seeing a slowdown."

Chambers also noted some concern about international growth.

"I think they are sticking with keeping expectations in check and then trying to outperform," said Inder Singh, an analyst with Prudential Equity Group.

"I don't see the reason for people to turn cautious," Singh said. "There is always a bit of softness here and there."

Cisco reported net income of $1.4 billion, or 22 cents a share, for the period ended April 29, including a stock-based compensation expense, down slightly from $1.405 billion a year earlier.

"The revenue number was a nice beat, the gross margin number (a key measure of profitability) was fairly healthy also," said Singh.

He said Cisco's $6.9 billion purchase of cable set-top box maker Scientific-Atlanta earlier this year also helped boost revenues for the quarter.

"I think they had a very solid quarter and their business momentum suggests that they should be able to outperform their guidance," he added.

Cisco stock had been stuck in a rut since late 2004 while the stocks of other equipment makers rallied.

But this year is a different story. Analysts say the outfit is benefiting as companies are finally upgrading their corporate networks and buying new equipment.

To that end, the company said router sales rose 5 percent from a year ago in Cisco's most recent quarter, while sales of switches jumped 13 percent.

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