Cisco Dazzles With Q2 Earnings
Cisco Systems Inc. (NASDAQ: CSCO) reported fiscal second-quarter financial results after markets closed Wednesday. The company posted $0.63 in earnings per share (EPS) on $11.9 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $0.59 in EPS on $11.81 billion in revenue. The same period of last year reportedly had $0.57 in EPS on $11.58 billion in revenue.
Revenue by geographic segment was: Americas up 5%, EMEA flat and APJC down 2%. Product revenue performance reflected solid growth in Applications and Security, which each increased 6%. Infrastructure Platforms increased by 2%.
Deferred revenue was $18.8 billion, up 10% in total, with deferred product revenue up 19%, driven largely by subscription-based and software offers, and deferred service revenue was up 4%. The portion of deferred product revenue related to recurring software and subscription offers increased 36%.
The board of directors declared a quarterly dividend of $0.33 per common share, a four-cent or 14% increase over the previous quarter’s dividend, to be paid on April 25, to all shareholders of record as of the close of business on April 5.
Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $0.64 to $0.66 and revenue growth of 3% to 5% year over year. The consensus estimates call for $0.63 in EPS and $12.13 billion in revenue for the quarter.
Chuck Robbins, board chair and chief executive, said:
We had a great quarter which demonstrates that our strategy is working. Our business is growing, we have a fantastic innovation pipeline, our balance sheet is strong and we have a team that’s executing incredibly well. The network is more critical to business success than ever, and our new intent-based networking portfolio has great momentum including the fastest ramping new product in our history.
Shares of Cisco closed Wednesday up 2% at $42.09, with a consensus analyst price target of $42.02 and a 52-week trading range of $30.36 to $42.98. Following the announcement, the stock was up 5% at $44.20 in the after-hours trading session.