Cisco Systems Inc. (NASDAQ: CSCO) reported its financial results for the fiscal second quarter on Tuesday that topped Wall Street estimates.
Cisco shares were reported close to 4% down in after-hours trading on Tuesday. The stock is now trading at £33.69 per share after recovering from a low of £24 per share in March 2020 when COVID-19 disruptions weighed on its business.
Cisco’s Q2 financial results versus analysts’ estimates
Cisco said that its net income in the second quarter printed at £1.85 billion that translates to 43.42 pence per share. In the comparable quarter of last year, it had reported a higher £2.08 billion of net income or 49.22 pence per share. Cisco’s financial performance had also remained better than expected in the prior quarter (Q1).
On an adjusted basis, the American multinational earned 57.18 pence per share in Q2 versus the year-ago figure of 55.73 pence per share. Cisco valued its revenue in the recent quarter at £8.66 billion compared to £8.69 billion last year.
According to FactSet, experts had forecast the company to post £8.63 billion of revenue in the second quarter. Their estimate for adjusted per-share earnings was capped at a lower 55.01 pence. In an announcement in December, Cisco said it will acquire UK’s IMImobile plc for £543 million.
Other prominent figures in Cisco’s earnings report
Other prominent figures in Cisco’s earnings report on Tuesday include a 3% annualised decline in infrastructure sales to £4.62 billion. Applications sales registered at £980 million in Q2 while security sales saw a year over year growth of 10% to £594.92 million.
Analysts, on the other hand, had expected £4.51 billion of infrastructure sales, £1.01 billion of applications sales, and £603.17 million of security sales for Cisco in the second quarter. At £2.45 billion, services revenue jumped 2% in Q2 versus £2.47 billion expected.
For the fiscal third quarter, the San Jose-based company expects its revenue to fall in the range of £8.96 billion to £9.18 billion. Cisco forecasts up to 59.35 pence per share of earnings in Q3. In comparison, experts are calling for £8.94 billion of revenue and 58.62 pence of earnings per share.
Cisco performed slightly downbeat in the stock market last year with an annual decline of roughly 6%. At the time of writing, it is valued at £148.17 billion and has a price to earnings ratio of 19.69.
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