Cisco’s Earnings Beat Not Enough to Appease Investors
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For the quarter ended April 28, Cisco reported net sales of $11.588 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion, or 40 cents a share, and non-GAAP net income of $2.6 billion, or 48 cents a share. The consensus estimate was for net sales of $11.57 billion. Non-GAAP profits beat Wall Street’s estimates by a penny.
“We delivered solid results this quarter with record revenue and non-GAAP earnings per share,” said John Chambers, Cisco chairman and CEO. “We are successfully executing against our long-term strategic plan of growing profit faster than revenue, and in a cautious IT spending environment, we continue to outperform our competitors.”
Cash flow from operations was $3.0 billion, compared to $3.1 billion in the second quarter, and flat compared to the year-ago period. Cisco finished the quarter with $48.4 billion in cash and investments, up from $46.7 billion a year earlier. In the quarter, the company bought back 27 million shares for a total of $550 million.
Despite positive results, investors are waiting on Cisco’s conference call this afternoon in which the company’s outlook for the year ahead will be discussed. Shares were down nearly 3 percent this afternoon ahead of the call.
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