On May 8, networking giant Cisco Systems (NASDAQ:CSCO) released third-quarter earnings for the period ended April 28.
- Management reported the good quarter most had expected, and CEO John Chambers talked glowingly of being in a "unique market transition" that will benefit his company.
- During the quarter, Cisco repurchased 56 million shares of common stock at an average price of $26.85 per share, for an aggregate purchase price of $1.5 billion.
- The stock carries an above-average four-star rating in Motley Fool CAPS.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change | |
|---|---|---|---|
|
Sales |
$8,866.0 |
$7,322.0 |
21.1% |
|
Net Profit |
$1,874.0 |
$1,400.0 |
33.9% |
|
EPS |
$0.30 |
$0.22 |
36.4% |
|
Diluted Shares |
6,244.0 |
6,289.0 |
(0.7%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
63.7% |
64.6% |
(0.9) |
|
Operating Margin |
24.8% |
22.6% |
2.2 |
|
Net Margin |
21.1% |
19.1% |
2.0 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$22,336.0 |
$18,183.0 |
22.8% |
|
Accounts Rec. |
$3,238.0 |
$2,980.0 |
8.7% |
|
Inventory |
$1,289.0 |
$1,313.0 |
(1.8%) |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$864.0 |
$837.0 |
3.2% |
|
Long-Term Debt |
$6,478.0 |
$6,346.0 |
2.1% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$7,366.0 |
$5,582.0 |
32.0% |
|
Capital Expenditures |
$1,299.0 |
$5,942.0 |
(78.1%) |
|
Free Cash Flow |
$6,067.0 |
($360.0) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
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