Cisco beat revenue and earnings estimates
Cisco (CSCO) announced its results for the first quarter of fiscal 2019, which ended in October 2018, on Wednesday, November 14. The stock rose 5% in after-hours trading on Wednesday, as the tech giant beat earnings and revenue estimates. Cisco generated Q1 revenues of $13.07 billion, an increase of 7.7% YoY. This rise represented the fourth consecutive quarter of YoY revenue growth, following eight consecutive quarters of decline. Wall Street was expecting revenue of $12.87 billion.
Cisco’s net income surged by 48% YoY to $3.55 billion. Cisco made $0.75 per share, excluding stock-based compensation and other items. Analysts were expecting earnings of $0.72 per share on an adjusted basis.
Cisco could feel the heat of the trade war soon
The company’s biggest segment, Infrastructure Platforms, which includes data center networking switches, rose 9% YoY, reaching $7.64 billion and beating estimates of $7.4 billion. Cisco’s Applications business, which includes collaboration tools and AppDynamics, generated $1.42 billion, a rise of 18% YoY and beating the $1.35 billion estimate.
A number of Cisco’s switches and routers, which it makes in China and imports to the US, now have a 10% tariff. While Cisco didn’t really feel the pinch in the first quarter, that could change, as the tariff is slated to jump to 25% in January. Cisco’s stock is up 15% year-to-date.