Telecommunications

Cisco Systems (CSCO) reported fiscal Q4 non-GAAP earnings late Wednesday of $0.87 per diluted share, down from $1.14 a year earlier. Analysts polled by Capital IQ expected $0.85. Revenue for the quarter ended July 27 was $13.64 billion, down from $15.20 billion a year earlier. Analysts surveyed by Capital IQ expected $13.54 billion. The company expects fiscal Q1 2025 non-GAAP EPS between $0.86 and $0.88 on revenue ranging from $13.65 billion to $13.85 billion. Analysts polled by Capital IQ expect $0.85 and $13.76 billion, respectively. The company expects fiscal 2025 non-GAAP EPS of $3.52 to $3.58 on revenue between $55 billion and $56.2 billion. Analysts surveyed by Capital IQ expect $3.55 and $55.68 billion. The company maintained its quarterly dividend at $0.40 per share, payable Oct. 23 to stockholders of record Oct. 2. Separately, the company outlined a restructuring plan that will likely affect roughly 7% of its global workforce, […]

Cisco Systems (CSCO) is positioned to beat market expectations as it is anticipated to set “more achievable” fiscal 2025 targets after its Q3 results topped Street views, Morgan Stanley said in a Thursday note. The company reported fiscal Q3 non-GAAP earnings late Wednesday of $0.88 per diluted share, down from $1.00 a year earlier, and revenue of $12.70 billion, also down from $14.57 billion a year earlier. Morgan Stanley noted that orders during the period were better than expected and a better product mix buoyed the quarter’s gross margins. Morgan Stanley also said it sees Cisco’s “inventory digestion nearing an end, particularly if at the edge, as being a positive for EPS beat potential in coming quarters.” The investment firm, however, lowered its fiscal 2025 estimates for the company’s revenue and earnings per share due to more expenses related to Splunk’s integration, a more muted environment, and an uncertain pace

We trim our 12-month target price by $5 to $50, 14.0x our FY 25 (Jul.) EPS estimate, a slight discount to its three-year forward average P/E at 14.3x, reflecting our slower growth outlook. We lower our FY 24 EPS estimate by $0.02 to $3.70 and cut FY 25’s by $0.28 to $3.56. CSCO reported Apr-Q operating EPS of $0.88 vs. $1.00, $0.06 above the consensus. Apr-Q revenue fell 13%, driven by a 27% drop in Networking as customers continue to drawdown inventory. This is partially offset by 36% growth in Security, driven by the Splunk acquisition and growth in SASE and Zero-Trust offerings, as well as 27% growth in Security, driven by ThousandEyes network services. Customer product inventories are slowly being deployed and CSCO expects customers to finish drawing down inventory by the end of next quarter. Win rates continue to be stable, and we expect to see strength in

Cisco Systems (CSCO) reported fiscal Q3 non-GAAP earnings late Wednesday of $0.88 per diluted share, down from $1.00 a year earlier. Analysts polled by Capital IQ expected $0.82. Revenue for the quarter ended April 27 was $12.70 billion, down from $14.57 billion a year earlier. Analysts surveyed by Capital IQ expected $12.63 billion. The company expects fiscal Q4 non-GAAP EPS between $0.84 and $0.86 and revenue ranging from $13.4 billion to $13.6 billion. Analysts polled by Capital IQ expect $0.84 and $13.54 billion, respectively. The company now expects fiscal 2024 non-GAAP EPS of $3.69 to $3.71 and revenue between $53.6 billion and $53.8 billion. The previous guidance was for non-GAAP EPS between $3.68 to $3.74 and revenue between $51.5 billion and $52.5 billion. Analysts surveyed by Capital IQ expect $3.64 and $53.54 billion. The company maintained its quarterly dividend at $0.40 per share, payable July 24 to stockholders of record

Cisco Exec Says Expect Revenue Growth To Be In The Low To Mid Single Digit Range Next Year.

The following is a summary of the Cisco Systems, Inc. (CSCO) Q3 2024 Earnings Call Transcript: Financial Performance: Cisco Systems reported Q3 total revenue of $12.7 billion, down 13% year-over-year. Total product revenue was $9 billion, down 19%, and service revenue was $3.7 billion, up 6%. Non-GAAP net income was $3.6 billion, down 14%, and non-GAAP earnings per share was $0.88, down 12%. The Q3 operating cash flow was $4 billion, down 24%. Cisco returned $2.9 billion to shareholders via share repurchases and dividends in Q3, with a total return of $8.5 billion year-to-date. Business Progress: Cisco’s third quarter marked the successful acquisition of Splunk which contributed over $4 billion in annualized recurring revenue. The company saw product order growth in two of its significant product portfolios – data center and campus switching – and also in security and collaboration product categories. Future growth in fiscal ’25 is expected to