Cisco Systems (CSCO) reported $13.99 billion in revenue for the quarter ended January 2025, representing a year-over-year increase of 9.4%. EPS of $0.94 for the same period compares to $0.87 a year ago.
The reported revenue represents a surprise of +0.91% over the Zacks Consensus Estimate of $13.87 billion. With the consensus EPS estimate being $0.91, the EPS surprise was +3.30%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cisco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Product- Networking: $6.85 billion compared to the $6.67 billion average estimate based on seven analysts. The reported number represents a change of -3.3% year over year.
- Revenue- Product- Observability: $277 million versus $264.51 million estimated by seven analysts on average.
- Revenue- Services: $3.76 billion compared to the $3.73 billion average estimate based on seven analysts. The reported number represents a change of +5.6% year over year.
- Revenue- Product- Security: $2.11 billion versus $1.99 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +117% change.
- Revenue- Product: $10.23 billion versus the seven-analyst average estimate of $9.92 billion. The reported number represents a year-over-year change of +10.9%.
- Revenue- Product- Collaboration: $996 million compared to the $1 billion average estimate based on seven analysts. The reported number represents a change of +0.7% year over year.
- Non-Gaap Gross Margin- Service: $2.69 billion compared to the $2.64 billion average estimate based on five analysts.
- Non-Gaap Gross Margin- Product: $6.92 billion versus $6.56 billion estimated by five analysts on average.
Shares of Cisco have returned +5.2% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
