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Cisco (CSCO) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
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Cisco Systems (CSCO - Free Report) reported $15.2 billion in revenue for the quarter ended July 2023, representing a year-over-year increase of 16%. EPS of $1.14 for the same period compares to $0.83 a year ago.
The reported revenue represents a surprise of +1.04% over the Zacks Consensus Estimate of $15.05 billion. With the consensus EPS estimate being $1.06, the EPS surprise was +7.55%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cisco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Remaining Performance Obligations (RPO) - Total: $34.87 billion versus $36.37 billion estimated by two analysts on average.
Revenue- Products: $11.65 billion versus $11.44 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +20.3% change.
Revenue- Services: $3.55 billion versus $3.57 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +4.1% change.
Revenue- Product-Optimized Application Experiences: $214 million compared to the $208.93 million average estimate based on eight analysts. The reported number represents a change of +15.7% year over year.
New Products- End-to-End Security: $987 million versus $1.02 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +0.3% change.
Revenue- Product-Internet for the Future: $1.30 billion versus the eight-analyst average estimate of $1.43 billion. The reported number represents a year-over-year change of +3.3%.
Revenue- Product-Secure, Agile Networks: $8.13 billion compared to the $7.68 billion average estimate based on eight analysts. The reported number represents a change of +33.3% year over year.
Revenue- Products-Collaboration: $1.02 billion versus the eight-analyst average estimate of $1.08 billion.
Revenue- Product-Other: $2 million versus the seven-analyst average estimate of $2.90 million. The reported number represents a year-over-year change of -33.3%.
Non-Gaap Gross profit- Service: $2.40 billion versus the six-analyst average estimate of $2.45 billion.
Non-Gaap Gross profit- Product: $7.63 billion versus the six-analyst average estimate of $7.33 billion.
Shares of Cisco have returned +4.1% over the past month versus the Zacks S&P 500 composite's -1.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Cisco (CSCO) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
Cisco Systems (CSCO - Free Report) reported $15.2 billion in revenue for the quarter ended July 2023, representing a year-over-year increase of 16%. EPS of $1.14 for the same period compares to $0.83 a year ago.
The reported revenue represents a surprise of +1.04% over the Zacks Consensus Estimate of $15.05 billion. With the consensus EPS estimate being $1.06, the EPS surprise was +7.55%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cisco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Remaining Performance Obligations (RPO) - Total: $34.87 billion versus $36.37 billion estimated by two analysts on average.
- Revenue- Products: $11.65 billion versus $11.44 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +20.3% change.
- Revenue- Services: $3.55 billion versus $3.57 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +4.1% change.
- Revenue- Product-Optimized Application Experiences: $214 million compared to the $208.93 million average estimate based on eight analysts. The reported number represents a change of +15.7% year over year.
- New Products- End-to-End Security: $987 million versus $1.02 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +0.3% change.
- Revenue- Product-Internet for the Future: $1.30 billion versus the eight-analyst average estimate of $1.43 billion. The reported number represents a year-over-year change of +3.3%.
- Revenue- Product-Secure, Agile Networks: $8.13 billion compared to the $7.68 billion average estimate based on eight analysts. The reported number represents a change of +33.3% year over year.
- Revenue- Products-Collaboration: $1.02 billion versus the eight-analyst average estimate of $1.08 billion.
- Revenue- Product-Other: $2 million versus the seven-analyst average estimate of $2.90 million. The reported number represents a year-over-year change of -33.3%.
- Non-Gaap Gross profit- Service: $2.40 billion versus the six-analyst average estimate of $2.45 billion.
- Non-Gaap Gross profit- Product: $7.63 billion versus the six-analyst average estimate of $7.33 billion.
View all Key Company Metrics for Cisco here>>>Shares of Cisco have returned +4.1% over the past month versus the Zacks S&P 500 composite's -1.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.