Why Cisco Earnings Are So Great
Cisco Systems reported its most recent quarterly results after the markets closed on Wednesday.
Cisco Systems, Inc. (NASDAQ: CSCO | CSCO Price Prediction) reported its most recent quarterly results after the markets closed on Wednesday. The company said that it had $0.78 in earnings per share (EPS) and $13.0 billion in revenue, compared with consensus estimates that called for $0.77 in EPS and $12.89 billion in revenue. The fiscal third quarter from last year had $0.66 in EPS and $12.46 billion in revenue.
Total revenue increased 6% year over year, with product revenue up 7% and service revenue up 3%. Revenue by geographic segment was: Americas up 9%, EMEA up 5%, and APJC down 4%. Product revenue performance was broad based with growth in Security, up 21%, Applications, up 9%, and Infrastructure Platforms, up 5%.
Deferred revenue was $17.5 billion, down 8% in total, with deferred product revenue down 23%. Deferred service revenue was up 3%.
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Looking ahead to the fiscal fourth quarter, the company expects to see EPS in the range of $0.80 to $0.82 and revenues growing in the range of 4.5% to 6.5% year over year.
Chuck Robbins, chairman and CEO of Cisco, commented:
Our strong performance in the quarter was across the business, reflecting our customers’ confidence in our strategy, business model and market-leading portfolio. Technology is at the heart of our customers’ strategies and we are building the technology to help them achieve their business objectives.
Shares of Cisco closed Wednesday at $52.44, with a 52-week range of $40.25 to $57.53. The stock has a consensus analyst price target of $56.46. Following the announcement, the stock was up about 3% at $53.89 in the after-hours session.
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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.
