Cisco Starts Fiscal 2019 With Strong Q1 Results
Cisco Systems shares rose after it reported better-than-expected fiscal first-quarter financial results.
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.
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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.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
