Cisco Stock Rises after Better-than-Expected Earnings and Revenue
Hardware networking giant Cisco (CSCO) announced its third quarter of fiscal 2019 results on May 15.
May 16 2019, Published 12:19 p.m. ET
Cisco beats estimates
Hardware networking giant Cisco (CSCO) announced its third quarter of fiscal 2019 results on May 15. The quarter ended on April 27. Cisco reported revenue of $13.0 billion, a rise of 4% YoY. Adjusted net income rose 8% to $3.5 billion, while adjusted EPS rose 18% to $0.78. Cisco experienced a strong quarter driven by a solid order book, revenue growth, and margin expansion. Total product order for Cisco rose 4%, while product revenue rose 7% to $9.7 billion in the third quarter.
Analysts estimated Cisco to post revenue of $12.89 billion in the third quarter and earnings per share of $0.77. After Cisco beat analyst earnings and revenue estimates in the third quarter, the stock rose 2.8% in after-hours trading.
Long-term drivers for Cisco
Cisco is optimistic about its long-term strategy. The company claims to be building the only integrated multi-domain intent-based architecture with a primary focus on security to enable enterprises to connect users and devices over multiple networks or to any application. Cisco is also looking to integrate machine learning and artificial intelligence capabilities across its entire portfolio.
During Cisco’s earnings call, company CEO Charles Robbins stated, “New technologies like cloud, AI, IoT, 5G and WiFi 6, among others, are coming together to revolutionize the way we operate our businesses and deliver new experiences for our customers and teams. We are fundamentally changing the way our customers approach their technology infrastructure to address the rising complexity in their IT environments.”