Cisco’s third-quarter results
On May 15, Cisco (CSCO) announced its third-quarter earnings results for the quarter ending in April. The stock rose nearly 10% in the past week after the company’s numbers beat analysts’ estimates. Cisco expects limited damage from ongoing US-China trade tensions.
Cisco continued on its path to recovery in the third quarter. The company’s revenues have risen 4.0% YoY (year-over-year) to $12.96 billion.
Cisco posted a net profit of $3.04 billion in the third quarter, which rose 13% YoY. On an adjusted basis, the company saw an EPS of $0.78, which was slightly higher than analysts’ estimate of $0.77 per share.
Cisco’s core business continues to grow
Cisco’s core business of routers, switches, and other networking equipment generated $7.55 billion in revenues and grew 5% YoY. The company beat analysts’ estimates of $7.46 billion.
The company’s revenues from its applications unit rose 9% YoY to $1.43 billion—below analysts’ expectations.
Cisco generated $707 million from its small but fast-growing security division and grew 21% YoY.
Cisco expects to make $0.80–$0.82 per share on an adjusted basis in the current quarter, which meets analysts’ estimates. The company expects to generate revenues of $13.29 billion in the current quarter, which would represent 3.5% growth YoY.
The company seems to be recovering after it saw several quarters of negative growth. The stock rose 30% in the past year. Cisco stock is close to its highest point in 19 years.