The 10-second takeaway
For the quarter ended Jan. 26 (Q2), Cisco Systems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins dropped, net margins grew.
Cisco Systems logged revenue of $12.10 billion. The 36 analysts polled by S&P Capital IQ looked for a top line of $12.06 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.51. The 36 earnings estimates compiled by S&P Capital IQ forecast $0.48 per share. GAAP EPS of $0.59 for Q2 were 48% higher than the prior-year quarter's $0.40 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 60.7%, 60 basis points worse than the prior-year quarter. Operating margin was 23.2%, 50 basis points worse than the prior-year quarter. Net margin was 26.0%, 710 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $12.22 billion. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $48.67 billion. The average EPS estimate is $1.97.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 10,507 members out of 11,023 rating the stock outperform, and 516 members rating it underperform. Among 1,967 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,887 give Cisco Systems a green thumbs-up, and 80 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 $22.11.
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