Tech bellwether and network solutions leader
) reported fiscal 2nd quarter earnings after the bell Wednesday.
Revenues of $11.16 billion in topped the Zacks Consensus Estimate
of $11049 million, while earnings per share (after stock-based
compensation and before non-recurring items) was 42 cents per
share, beating the Zacks estimate by a penny.
Cash flow form operations grew frown $2.6 billion in the
company's fiscal Q1 (ended October 2013) to $2.9 billion, which
is good, but year over year GAAP revenue was down close to 8%
while Net Income was down 54%. Cisco had made many large
acquisitions to help forge new growth in the future over the past
year, but it looks like investors will have to wait a bit to see
the monetization of new businesses WhipTail Technologies,
Collaborate.com and Insieme Networks.
Cisco managed to bump up its quarterly dividend yield from 17
cents to 19 cents per share, and also bought back $4 billion
worth of stock for a total return to shareholders of $4.9
billion. Just the company's way of saying "thank you for your
patience," I suppose.
No analysts had made any upward or downward estimate revisions to
Cisco estimates in the last two months, for either the quarter
just reported, the current Q3, fiscal 2014 or fiscal 2015.
Apparently everyone is in "wait and see" mode when it comes to
Cisco's "Next Generation of IT." At least the game-plan is in
place, however; acquisitions this massive usually take time to
turn into big growth.
The conference call should be instructional regarding what the
initial earnings report did not provide: gross margin, in
particular (63% in Q1), and forward guidance, of course. But if
the company starts gaining traction from its various acquired
growth initiatives, Cisco investors will be happy they
Currently the company is a Zacks Rank #3 (Hold), but shares
are trading down 3% in the after-market after earnings were
reported. CSCO shares are up mildly both year to date and year
CISCO SYSTEMS (CSCO): Free Stock Analysis
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