The 10-second takeaway
For the quarter ended Oct. 27 (Q1), Cisco Systems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins increased, net margins grew.
Cisco Systems logged revenue of $11.88 billion. The 37 analysts polled by S&P Capital IQ looked for sales of $11.78 billion on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $11.26 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.48. The 39 earnings estimates compiled by S&P Capital IQ averaged $0.46 per share. GAAP EPS of $0.39 for Q1 were 18% higher than the prior-year quarter's $0.33 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.0%, 20 basis points worse than the prior-year quarter. Operating margin was 22.3%, 90 basis points better than the prior-year quarter. Net margin was 17.6%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $12.03 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $48.67 billion. The average EPS estimate is $1.93.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 10,453 members out of 10,964 rating the stock outperform, and 511 members rating it underperform. Among 1,901 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,813 give Cisco Systems a green thumbs-up, and 88 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cisco Systems is outperform, with an average price target of $21.65.
Can your retirement portfolio provide you with enough income to last? You'll need more than Cisco Systems. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Cisco Systems to My Watchlist.