Cisco beat analysts' expectations

By: Miguel A. Rodriguez

09:45, 14 September 2020

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Cisco made public yesterday the Q1 financial report

The multinational technology conglomerate posted a better than expected earnings report. The income came in at $2.8 billion. The revenue dropped by 8% compared to the same period last year to $12 billion from $12.96 billion. The EPS was 79 cents after adjustment.

The satisfactory result came as a response to the work from home policy installed due to the pandemic. The company's CEO said that organizations from all around the world had to optimize their operations and support remote working. Cisco’s goal was to help others do that. He continued saying that more than 95% out of 75,900 employees are working from home.

Infrastructure Platforms – The company's largest segment designed for corporate data centers had a revenue of $6.43 billion, 15% lower - it fell behind the $6.83 consensus. 

The Applications segment from which Webex video-calling service is a part had a revenue of $1.36 billion, 5% lower compared to the same period last year, and smaller than the $1.43 billion consensus.  In April alone, Webex had over 500 million active participants.  

Unlike other companies who pulled out their guidance for the next quarter, Cisco provided detailed information on it. The revenue could decrease between 8.5%- 11.5%, to approximately $12 billion.

Cisco stocks went up 3% in after-hours trading. YOY, the stock plummeted 20%, but since March 12, shares gained 30%. USA500 lost 1% in the same time frame. 

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Sources: cnbc.com, marketwatch.com


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.