Cisco Systems (Nasdaq: CSCO) reported earnings on Aug. 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended July 28 (Q4), 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 expanded significantly.
Gross margins dropped, operating margins improved, net margins increased.
Revenue details
Cisco Systems chalked up revenue of $11.69 billion. The 36 analysts polled by S&P Capital IQ wanted to see revenue of $11.60 billion on the same basis. GAAP reported sales were 4.4% higher than the prior-year quarter's $11.20 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.47. The 38 earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. GAAP EPS of $0.36 for Q4 were 64% higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 60.6%, 70 basis points worse than the prior-year quarter. Operating margin was 21.0%, 120 basis points better than the prior-year quarter. Net margin was 16.4%, 540 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $11.67 billion. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $48.34 billion. The average EPS estimate is $1.91.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 10,429 members out of 10,943 rating the stock outperform, and 514 members rating it underperform. Among 1,945 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,858 give Cisco Systems a green thumbs-up, and 87 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 $21.16.
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