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Compared to Estimates, Cisco (CSCO) Q1 Earnings: A Look at Key Metrics

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For the quarter ended October 2024, Cisco Systems (CSCO - Free Report) reported revenue of $13.84 billion, down 5.6% over the same period last year. EPS came in at $0.91, compared to $1.11 in the year-ago quarter.

The reported revenue represents a surprise of +0.57% over the Zacks Consensus Estimate of $13.76 billion. With the consensus EPS estimate being $0.87, the EPS surprise was +4.60%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

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:

  • Revenue- Product: $10.11 billion versus the seven-analyst average estimate of $9.90 billion. The reported number represents a year-over-year change of -9.2%.
  • Revenue- Services: $3.73 billion versus the seven-analyst average estimate of $3.70 billion. The reported number represents a year-over-year change of +5.6%.
  • Revenue- Product- Security: $2.02 billion compared to the $1.82 billion average estimate based on six analysts.
  • Revenue- Product- Observability: $258 million versus the six-analyst average estimate of $256.53 million.
  • Revenue- Product- Networking: $6.75 billion versus $6.91 billion estimated by six analysts on average.
  • Revenue- Product- Collaboration: $1.09 billion compared to the $1.06 billion average estimate based on six analysts. The reported number represents a change of -2.9% year over year.
  • Non-Gaap Gross Margin- Service: $2.62 billion compared to the $2.59 billion average estimate based on five analysts.
  • Non-Gaap Gross Margin- Product: $6.97 billion compared to the $6.48 billion average estimate based on five analysts.
View all Key Company Metrics for Cisco here>>>

Shares of Cisco have returned +8.6% over the past month versus the Zacks S&P 500 composite's +3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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