Why Cisco’s Q2 Is Rock Solid
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
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.
Contact [email protected] for any questions or corrections.
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.
