Cisco (CSCO) Q1 Earnings Beat, Shares Down On Grim Outlook
Zacks Investment Research | Nov 13, 2019 10:11PM ET
Cisco Systems (NASDAQ:CSCO) reported first-quarter fiscal 2020 non-GAAP earnings of 84 cents per share that beat the Zacks Consensus Estimate by 3.7% and grew 12% year over year.
Revenues climbed 0.7% year over year to $13.16 billion and surpassed the consensus estimate by 0.6%. Excluding the Service Provider Video Software Solutions (SPVSS) business that was divested in second-quarter fiscal 2019, revenues increased 2% year over year.
Acquisitions contributed 50 basis points (bps) to the top line. Notably, Cisco completed four acquisitions, all in the applications space, in the reported quarter.
Cisco’s shares were down almost 6% in pre-market trading, primarily due to unimpressive first-quarter fiscal 2020 results and weak second-quarter guidance.
The company blamed sluggish macro-economic conditions (due to the U.S.-China trade, Brexit and others) and a slowing China economy for the weakness in the service provider, enterprise and commercial end markets. Management expects growth in these markets to be muted in the near term.
Cisco Systems, Inc. Price, Consensus and EPS Surprise
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