16 Nov

How Cisco Performed in the Latest Quarter

WRITTEN BY Sanmit Amin

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.

How Cisco Performed in the Latest Quarter

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.

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