Cisco Systems Earnings: Here’s Why Investors are Not Happy Now

Cisco Systems, Inc. (NASDAQ:CSCO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 8.44%.

Cisco Systems, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 10.64% to $0.52 in the quarter versus EPS of $0.47 in the year-earlier quarter.

Revenue: Rose 6.22% to $12.42 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cisco Systems, Inc. reported adjusted EPS income of $0.52 per share. By that measure, the company beat the mean analyst estimate of $0.51. It beat the average revenue estimate of $12.41 billion.

Quoting Management: “My confidence in our ability to be the #1 IT Company is increasing. Our fourth quarter was a record on many fronts, with record revenue, and record non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per share. In every case, we exceeded the midpoint of our guidance. We also generated $4 billion in operating cash flow in the quarter, another record,” stated Cisco Chairman and CEO John Chambers.

Key Stats (on next page)…

Revenue increased 1.65% from $12.22 billion in the previous quarter. EPS increased 1.96% from $0.51 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.51 and has not changed. For the current year, the average estimate has moved up from a profit of $2.00 to a profit of $2.01 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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