Cisco Systems tops analysts’ estimates for earnings and revenue in Q1
- Cisco Systems tops analysts’ estimates for earnings and revenue in fiscal Q1.
- The tech firm forecasts an up to 2% decline in revenue in the second quarter.
- Cisco named Scott Herren of Autodesk as its new Chief Financial Officer.
Cisco Systems Inc. (NASDAQ: CSCO) published its earnings report for the fiscal first quarter on Thursday that topped analysts’ estimates for earnings and revenue. In the prior quarter (Q4), Cisco had reported a 22% increase in its per-share earnings.
Cisco was reported about 8% up in after-hours trading on Thursday. At £31.60 per share, shares of the company are now close to 15% down year to date in the stock market after recovering from a low of £25.20 per share in March, when the impact of the Coronavirus pandemic was at its peak.
Cisco’s Q1 financial results versus analysts’ estimates
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According to Refinitiv, experts had forecast the company to print £9 billion of revenue in the first quarter. For earnings per share, their estimate was capped at 53.14 pence. In its report on Thursday, Cisco topped both estimates posting a higher £9.06 billion of revenue and 57.69 pence of per-share earnings in Q1.
For the fiscal second quarter, Cisco now forecasts its adjusted earnings per share to fall in the range of 56.17 pence to 57.69 pence per share. The technology conglomerate expects revenue to remain unchanged to slide by 2% in Q2. In comparison, analysts predict a 3% decline in revenue and 55.41 pence of adjusted EPS for Cisco in the second quarter.
The American multinational’s revenue in the recent quarter posted a 9% annualised decline after an identical decline in the prior quarter (Q4). Q1 marked the fourth consecutive quarter for Cisco to have seen a decline in revenue.
Cisco also said on Thursday that its public sector orders came in 5% higher on a year over year basis in the first quarter. Orders in service provider, commercial, and enterprise segments, on the other hand, were weaker than last year.
Other prominent figures in Cisco’s financial results
Other prominent figures in Cisco’s earnings report on Thursday include £4.81 billion of revenue (16% annualised decline) from infrastructure platforms segment versus £4.90 billion expected. Revenue from applications business stood at £1.05 billion (8% annualised decline) in the first quarter versus £1.06 billion expected.
Cisco named Scott Herren of Autodesk as its new Chief Financial Officer to replace Kelly Kramer on Thursday. Kramer retired earlier this year in August.
At the time of writing, the San Jose-based company is valued at £124 billion and has a price to earnings ratio of 14.67.