This current earnings season has not been much to write home
about for stocks in the Tech sector. But after the bell
Wednesday, tech giant
) handily beat EPS estimates, with earnings of 47 cents per share
(accounting for stock-based compensation) on revenues of $12.1
billion, which was a tad better than, but mostly in-line with,
expectations. These are both all-time records for Cisco.
CISCO SYSTEMS (CSCO): Free Stock Analysis
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Cisco develops routers and switchers that make up the
architecture of the Internet. The company cited the coming
together of its various growth businesses -- cloud computing,
mobile, data center, etc. -- as assisting this impressive
performance, especially in light of a difficult environment for
tech, in general. Reference the many big-time tech firms that
missed expectations in the quarter.
Posting a 9.3% positive earnings surprise means Cisco has now
beaten expectations for at least the past 5 quarters straight.
It's Cisco's 8th straight record revenue total, and net income in
the quarter was $2.7 billion, which was also above expectations.
Analysts were absolutely dormant in estimate revisions this
quarter: 43 cents per share was expected 90 days ago, and 43
cents was expected before the earnings report. Cisco CEO John
Chambers has been known to downplay guidance estimates, which is
a good way to consistently maintain positive earnings surprises
each quarter. Two analysts had revised upwards their estimates
for next quarter and fiscal 2013 in the past week, and it is
largely for this reason Cisco currently has a Zacks Rank #2.
We'll delve extensively into how well each of Cisco's segments
performed in the quarter a little bit later. Cisco shares are
dipping a bit in after-hours trading today (though they are still
near 52-week highs), but investors should be pleased overall with
Cisco's solid performance in the quarter.