Cisco Soars After Beating Q1 Profit & Revenue Estimates

Cisco Systems

Cisco Systems Inc (NASDAQ: CSCO)

Cisco Systems Inc. reported fiscal first quarter 2019 earnings after markets the closing bell. The company swung to another profitable quarter, thanks to a solid performance in its software business and it expects those gains to continue in the months ahead.

In August, the network equipment giant acquired software unicorn Duo Security Inc. for $2.35 billion to grab a share of the NEXT-GENeration cybersecurity space.

CSCO stock finished soared 4.56% to change hands at $46.35 in the extended trading hours, having ended the regular session at $44.33.

CSCO Earnings & Outlook

Cisco made a profit of $3.55 billion, or $0.77per share, up from $2.39 billion, or $0.48 per share, in the comparable period a year earlier. Earnings, adjusted for special items, came to $0.75 per share, beating Wall Street expectations by 3 cents. During the same three months last year, the company posted adjusted earnings of $0.61 per share.

Revenue grew 7.7% to $13.07 billion, compared with $12.14 billion in the same period a year ago. Analysts expected revenue to land at $12.86 billion, according to figures compiled by FactSet.

Looking ahead, the company views adjusted earnings of between $0.71 and $0.73 per share for its second quarter. It also expects revenue to be in the range of $12.48 billion to $12.72 billion for the quarter. Meanwhile, analysts model adjusted earnings of $0.72 per share and $12.54 billion in revenues.

Cisco Systems CEO Comments

“We had a strong start to fiscal 2019 and we believe our opportunity has never been greater. Our customers are looking to Cisco as a trusted partner to help them operate in a multi-cloud world and to transform their businesses. Our strategy is working and we are well positioned with our growing and differentiated portfolio across multiple domains to bring our customers a more secure, automated and simple IT infrastructure,” said Chuck Robbins, Chairman and Chief Executive Officer of Cisco Systems.

Kelly Kramer, the Chief Financial Officer of the company also remarked, “We executed well, with broad-based growth across all of our geographies, product categories and customer segments, and delivered 8% revenue growth and 23% non-GAAP EPS growth. We are seeing the returns on our investments in innovation as we continue to transform our business model.”

Cisco Systems, Inc. Company Profile

Cisco Systems, Inc. engages in the design, manufacture, and sale of Internet Protocol based networking products and services related to the communications and information technology industry. The firm operates through the following geographical segments: the Americas, EMEA, and APJC.

Its product comprises of the following categories: Switches, Routers, Wireless, Network Management Interfaces and Modules, Optical Networking, Access Points, Outdoor and Industrial Access Points, Next-Generation Firewalls, Advanced Malware Protection, VPN Security Clients, Email, and Web Security. The company was founded by Sandra Lerner and Leonard Bosack on December 10, 1984 and is headquartered in San Jose, CA. – CNN Money