Cisco Starts Fiscal 2019 With Strong Q1 Results

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When Cisco Systems Inc. (NASDAQ: CSCO) reported its fiscal first-quarter financial results after the markets closed on Wednesday, the company posted $0.75 in earnings per share (EPS) and $13.07 billion in revenue. Consensus estimates from Thomson Reuters that had called for $0.72 in EPS and revenue of $12.87 billion. In the same period of last year, Cisco said it had EPS of $0.61 on $12.14 billion in revenue.

During the most recent quarter, total revenue increased 8% year over year, with product revenue up 9% and service revenue up 3%. Revenue by geographic segment: Americas up 5%, EMEA up 11% and APJC up 12%. Product revenue performance was generally broad based, with growth in Applications, up 18%, Security, up 11%, and Infrastructure Platforms, up 9%.

Deferred revenue totaled $16.8 billion, down 9% in total, with deferred product revenue down 24%. Deferred service revenue was up 1%.

Looking ahead to the fiscal second quarter, the company expects to see EPS in the range of $0.71 to $0.73 and revenue growing between 5% and 7% year over year. Consensus estimates call for $0.72 in EPS and $12.53 billion in revenue.

Chuck Robbins, board chair and chief executive of Cisco, commented:

We had a strong start to fiscal 2019 and we believe our opportunity has never been greater. Our customers are looking to Cisco as a trusted partner to help them operate in a multi-cloud world and to transform their businesses. Our strategy is working and we are well positioned with our growing and differentiated portfolio across multiple domains to bring our customers a more secure, automated and simple IT infrastructure.

Shares of Cisco were last seen up 4% at $46.28 on Thursday, with a consensus analyst price target of $51.44. The stock has a 52-week trading range of $35.81 to $49.47.