Cisco Offers Gloomy Outlook on Revenue; Earnings Beat in Q2

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Cisco Earnings, Revenue Beat in Q2Cisco Earnings, Revenue Beat in Q2

By Yasin Ebrahim – Cisco reported on Wednesday fiscal second-quarter results that topped consensus estimates, but offered a gloomy outlook on revenue.

Shares fell 2.6% in after-hours trading.

Cisco (NASDAQ:) announced earnings per share of $0.77 on revenue of $12 billion. Analysts polled by anticipated EPS of $0.76 on revenue of $11.97 billion.

That compared with an EPS of $0.73 on revenue of $12.45 billion in the same period a year before. Cisco had reported EPS of $0.84 on revenue of $13.16 billion in the previous quarter.

Revenue in the company’s largest business, infrastructure platforms, which includes hardware, fell 8% to $6.5 billion in the quarter year on year.

Its applications business also fell 8% to $1.3 billion, while its services business grew 5% to $3.3 billion.

The company guided earnings in the range of 79 cents to 81 cents per share, with revenue expected to decline 1.5% to 3.5% in the fiscal third quarter year on year. Analysts were expecting earnings per share of $0.80 and revenue of $12.63 billion for the third quarter.

“We executed well this quarter by delivering strong margins and EPS growth while driving more software and subscriptions,” said Kelly Kramer, CFO of Cisco. “Our increased dividend shows confidence in the strength of our ongoing cash flows and demonstrates our commitment to shareholder return.”

Cisco (NASDAQ:) shares are up 4% from the beginning of the year , still down 14.28% from its 52-week high of $58.26 set on July 16, 2019. They are under-performing the which is up 9.21% year to date.

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