Cisco beats expectations despite lower federal demand

Tech beats.

Cisco reported Q1 results that beat expectations. Earnings in the quarter came in at $0.48 per share, topping the consensus estimate by $0.02 while revenue came in at $11.88 billion (a 5.5% year-over-year increase) which was ahead of the average analyst estimate of $11.77 billion.

Orders in the Americas were up 2% from the prior year, hurt by federal demand, while enterprise and service provider businesses were up 9% and 13%, respectively. Asia-Pacific was up 7%, driven by strength in India as Cisco continues to look to this region for growth in the face of weakness in Europe.

Management provided guidance for the second quarter, forecasting revenue growth of 3.5% to 5.5% and earnings in a range of $0.47 to $0.48 per share. Analysts were expecting growth of 4.2% and EPS of $0.47. Gross margin in the quarter is expected to be in the range of 61% to 62%, down from Q1’s 62.7%, with management pointing to a shift in product and the rapid growth of its UCS server line which has lower margins, as reasons for the decline.

Cisco Systems (CSCO : NASDAQ : US$17.66), Net Change: 0.81, % Change: 4.81%, Volume: 96,722,775

About the Author

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx.

Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome