We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cisco (CSCO) Q1 Earnings Top Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Cisco Systems (CSCO - Free Report) reported first-quarter fiscal 2024 non-GAAP earnings of $1.11 per share, which beat the Zacks Consensus Estimate by 7.77%. The bottom line jumped 29.1% year over year.
Revenues increased 7.6% year over year to $14.69 billion and beat the consensus mark by 0.4%. Product revenues (75.9% of total revenues) increased 8.7% on a year-over-year basis to $11.14 billion.
Networking revenues rose 10% year over year to $8.822 billion. Security revenues were $1.01 billion.
Collaboration revenues increased 3% to $1.12 billion. Observability revenues increased 21% to $190 million.
Cisco Systems, Inc. Price, Consensus and EPS Surprise
Service revenues (24.1% of total revenues) inched up 4.2% year over year to $3.53 billion.
Quarter in Detail
Region-wise, America’s revenues increased 14% year over year to $9.022 billion and beat the consensus mark by 5.45%. EMEA revenues were flat at $3.66 billion but lagged the consensus mark by 5.52%. APJC revenues decreased 3% year over year to $1.982 billion but missed the consensus mark by 8.05%
Annualized recurring revenues came in at $24.5 billion, up 5% year over year. Product ARR increased 10% year over year.
Non-GAAP gross margin expanded 410 basis points (bps) from the year-ago quarter’s level to 67.1%.
On a non-GAAP basis, the product gross margin expanded 550 bps to 66.5%. Service gross margin increased 20 bps to 69%.
Non-GAAP operating expenses were $4.47 billion, up 5.3% year over year. As a percentage of revenues, operating expenses decreased 70 bps year over year to 30.5%.
Non-GAAP operating margin expanded 480 bps year over year to 36.6%.
Balance Sheet and Cash Flow
As of Oct 28, 2023, Cisco’s cash & cash equivalents and investments balance were $23.5 billion compared with $26.15 billion as of Jul 29, 2023.
Total debt (short-term plus long-term) as of Oct 28, 2023, was $7.65 billion.
Cash flow from operating activities was $2.4 billion, lower than the $6 billion reported in the previous quarter.
The remaining performance obligations (“RPO”) at the end of the fiscal first quarter were $34.8 billion, up 12%, with 51% of this amount to be recognized as revenues over the next 12 months. Product RPO was up 14% and service RPO was up 11%.
Guidance
For second-quarter fiscal 2024, revenues are expected to be between $12.6 billion and $12.8 billion. The Zacks Consensus Estimate for revenues is pegged at $14.15 billion.
Non-GAAP gross margin is anticipated between 65% and 66% for the quarter.
Non-GAAP operating margin is expected between 31.5% and 32.5% for the quarter.
Non-GAAP earnings are anticipated between 82 cents and 84 cents per share. The Zacks Consensus Estimate is currently pegged at 98 cents per share.
For fiscal 2024, revenues are expected between $53.8 billion and $55 billion. Non-GAAP earnings are anticipated between $3.87 and $3.93 per share.
The consensus mark for fiscal 2024 earnings and revenues are pegged at $4.22 per share and $58.83 billion, respectively.
Image: Bigstock
Cisco (CSCO) Q1 Earnings Top Estimates, Revenues Up Y/Y
Cisco Systems (CSCO - Free Report) reported first-quarter fiscal 2024 non-GAAP earnings of $1.11 per share, which beat the Zacks Consensus Estimate by 7.77%. The bottom line jumped 29.1% year over year.
Revenues increased 7.6% year over year to $14.69 billion and beat the consensus mark by 0.4%. Product revenues (75.9% of total revenues) increased 8.7% on a year-over-year basis to $11.14 billion.
Networking revenues rose 10% year over year to $8.822 billion. Security revenues were $1.01 billion.
Collaboration revenues increased 3% to $1.12 billion. Observability revenues increased 21% to $190 million.
Cisco Systems, Inc. Price, Consensus and EPS Surprise
Cisco Systems, Inc. price-consensus-eps-surprise-chart | Cisco Systems, Inc. Quote
Service revenues (24.1% of total revenues) inched up 4.2% year over year to $3.53 billion.
Quarter in Detail
Region-wise, America’s revenues increased 14% year over year to $9.022 billion and beat the consensus mark by 5.45%. EMEA revenues were flat at $3.66 billion but lagged the consensus mark by 5.52%. APJC revenues decreased 3% year over year to $1.982 billion but missed the consensus mark by 8.05%
Annualized recurring revenues came in at $24.5 billion, up 5% year over year. Product ARR increased 10% year over year.
Non-GAAP gross margin expanded 410 basis points (bps) from the year-ago quarter’s level to 67.1%.
On a non-GAAP basis, the product gross margin expanded 550 bps to 66.5%. Service gross margin increased 20 bps to 69%.
Non-GAAP operating expenses were $4.47 billion, up 5.3% year over year. As a percentage of revenues, operating expenses decreased 70 bps year over year to 30.5%.
Non-GAAP operating margin expanded 480 bps year over year to 36.6%.
Balance Sheet and Cash Flow
As of Oct 28, 2023, Cisco’s cash & cash equivalents and investments balance were $23.5 billion compared with $26.15 billion as of Jul 29, 2023.
Total debt (short-term plus long-term) as of Oct 28, 2023, was $7.65 billion.
Cash flow from operating activities was $2.4 billion, lower than the $6 billion reported in the previous quarter.
The remaining performance obligations (“RPO”) at the end of the fiscal first quarter were $34.8 billion, up 12%, with 51% of this amount to be recognized as revenues over the next 12 months. Product RPO was up 14% and service RPO was up 11%.
Guidance
For second-quarter fiscal 2024, revenues are expected to be between $12.6 billion and $12.8 billion. The Zacks Consensus Estimate for revenues is pegged at $14.15 billion.
Non-GAAP gross margin is anticipated between 65% and 66% for the quarter.
Non-GAAP operating margin is expected between 31.5% and 32.5% for the quarter.
Non-GAAP earnings are anticipated between 82 cents and 84 cents per share. The Zacks Consensus Estimate is currently pegged at 98 cents per share.
For fiscal 2024, revenues are expected between $53.8 billion and $55 billion. Non-GAAP earnings are anticipated between $3.87 and $3.93 per share.
The consensus mark for fiscal 2024 earnings and revenues are pegged at $4.22 per share and $58.83 billion, respectively.
Zacks Rank & Upcoming Earnings to Watch
Cisco currently carries a Zacks Rank #3 (Hold).
NVIDIA (NVDA - Free Report) , ASANA (ASAN - Free Report) and Snowflake (SNOW - Free Report) are some better-ranked stocks that investors can consider in the broader sector.
While NVIDIA sports a Zacks Rank #1 (Strong Buy), ASANA and Snowflake carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA’s shares have jumped 234.5% year to date. NVDA is set to report its third-quarter fiscal 2024 results on Nov 21.
ASANA shares have gained 54.8% year to date. ASAN is set to report its third-quarter fiscal 2024 results on Dec 5.
Snowflake shares have returned 13.6% year to date. SNOW is set to report its third-quarter fiscal 2024 results on Nov 29.