Why Cisco’s Q2 Is Rock Solid
Cisco released better than expected fiscal second-quarter financial results after markets closed Wednesday.
Cisco Systems Inc. (NASDAQ: CSCO) released fiscal second-quarter financial results after markets closed Wednesday. The firm said that it had $0.77 in earnings per share (EPS) and $12.0 billion in revenue, compared with consensus estimates that called for $0.76 in EPS and $11.98 billion in revenue. The same period from last year had $0.73 in EPS and $12.45 billion in revenue.
Total revenue decreased 4% year over year, with product revenue down 6% and service revenue up 5%. Revenue by geographic segment was: Americas down 5%, EMEA down 3%, and APJC down 1%. Product revenue performance was led by growth in Security, up 9%. Infrastructure Platforms and Applications revenue were each down 8%.
Deferred revenue was $18.7 billion, up 8% in total, with deferred product revenue up 19%. Deferred service revenue was up 2%.
Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $0.79 to $0.81 and revenues declining in the range of 1.5% to 3.5% year over year. Consensus estimates are calling for $0.80 in EPS and $12.62 billion in revenue for the coming quarter.
Chuck Robbins, board chair and CEO of Cisco, commented:
I am incredibly proud of the innovation our teams continue to drive. I am confident in our long-term growth opportunities as we help our customers build out the networks for the future.
Shares of Cisco closed Wednesday at $49.93, within a 52-week range of $43.40 to $58.26. The consensus analyst price target is $52.30. Following the announcement, the stock was initially up less than 1% at $50.20 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.
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