Cisco Systems Inc. reported better-than-expected earnings for Q3 FY2024, despite experiencing its steepest revenue drop in 15 years. The company posted GAAP earnings per share (EPS) of $0.46 and non-GAAP EPS of $0.88, with revenue totaling $12.7 billion, down 13% year over year. Net income also fell by 41% to $1.89 billion. Despite these declines, Cisco's stock rose by 7% in after-hours trading as the company provided a solid sales and profit forecast for the current quarter. The company highlighted that customer demand is stabilizing, and its outlook for network demand is no longer weakening. Cisco also noted that its software and services segments now account for 65% of its revenue. The company’s guidance for FY2024 revenue exceeded estimates, driven in part by its recent acquisition of Splunk, which added 70 basis points to product gross margins. The prior guide did not include the Splunk acquisition, and the organic business performed at the high end of expectations for Q3.
Primary issue people wrestling with on $CSCO is dissecting the F'25 guide- have to do some mental gymnastics (F'24 tail backlog issues) to get to normalized MSD core growth; optically core biz down yoy plus SPLK; eps closer to 3.50 (loss of int inc + upped debt) vs. street 3.64
"In one of the great tech bull markets of anyone's career, this stock has been dead money for six, seven years..." @timseymour, @verrone_chris, @grassosteve trade the bounce in $CSCO after its upbeat Q1 earnings report. https://t.co/9cslv873eN
$AAPL and $NVDA both closing back in on record highs! @StrategasRP's @verrone_chris, @timseymour and @grassosteve make sense of tech leadership in the market. https://t.co/dUssgnAE8x
Cisco lifts annual revenue guidance after Q3 results top estimates https://t.co/SGyqgvJGtL https://t.co/MfAG0gBXxt
Cisco forecasts upbeat fourth-quarter revenue on enterprise demand https://t.co/qGBoV8kEMe https://t.co/YB5rWvZhO1
$CSCO guiding F'25 revs to low to mid single digit growth- street ests up bit over 4% (though street didn't all have SPLK in ests properly for q3/q4)-prob why stk sold off from AH highs; int exp also will cost them just under .30 of eps
$CSCO rips a beat-beat for Q3FY24, a good guide. Stock is up 7% AH. The steep revenue decline was driven by 'digestion' discussed last Q. Software 54% revenue, SW and Services 65% revenue. 🔥 Gary Steel, now President, Go to Market. More after the call, where the real… https://t.co/fj1lPCYh4u
$SPLK added 70bps to Prod GMs for $CSCO
$CSCO rips a beat-beat for Q3FY24, a good guide. Revenue is up 7% AH. The steep revenue decline was driven by 'digestion' discussed last Q. Software 54% revenue, SW and Services 65% revenue. 🔥 Gary Steel, now President, Go to Market. More after the call, where the real… https://t.co/97PaY9zrEX
"Results came in roughly in line with our expectations," Morningstar equity analyst William Kerwin says $CSCO earnings. "Networking really continues to be the primary driver of the business here." https://t.co/jL9mnKatZn
Numerically you can say CSCO beat on margins but the print reads like theyre just soul searching for how to re-pivot the company
Cisco reports Q3 revenue down 13% YoY to $12.7B, vs. $12.53B est., net income down 41% YoY to $1.89B, and forecasts FY 2024 revenue above estimates (@jordannovet / CNBC) https://t.co/1spvtUtJ1P 📫 Subscribe: https://t.co/OyWeKSRpIM https://t.co/TaA4HxDZZY
Biggest upside vector for $CSCO was GMs which came in 180bps above guide- looks like ex- SPLK core biz ahead by ~100M revs in q3/q4 vs. prior guide
Cisco’s stock rises on earnings as demand stabilizes, revenue outlook impresses https://t.co/3OSTxbRHTd
Cisco double beat. CFO: "Customers are consuming the equipment shipped over the last few quarters in line with our expectations and we are seeing stabilization of demand as a result" $CSCO: +4.5% AH https://t.co/n7YVPCLlRl
Cisco gave a solid sales and profit forecast for the current quarter, indicating that some customers are beginning to invest in their computer networks again. https://t.co/DKQ3xa0X1x
Cisco Stock Jumps on Earnings. Its Outlook for Network Demand Is No Longer Weakening. https://t.co/4h3xMmODNp
Cisco reports better-than-expected results even as revenue suffers steepest drop in 15 years https://t.co/a1z1xUL88t
$CSCO beat/ generally guide higher- prior guide did not include $SPLK acq so sellside ests a hodge podge- got earlier than exp'd approval halfway thru q3; said organic biz high end of better q3
$CSCO Earnings: - GAAP: $0.46; Non-GAAP: $0.88 - $12.7 billion in revenue, down 13% year over year, in line with expectations and reflects our customers' continued implementation of products on-hand - GAAP EPS decreased 41% year over year, which includes a negative $0.09 impact… https://t.co/54nj4tThwa
Cisco $CSCO Earnings Setup - Is the Bleeding Over? An interesting setup today with semis / AI names ripping but $CSCO largely sitting out. Performance has lagged for almost a year, with the last two reports highlighting rather brutal write-downs to earnings expectations. https://t.co/pSzLFlIY0Z
Cisco $CSCO earnings preview: JPMorgan highlights 3 key themes to watch in Q3 print https://t.co/7Jd9h1wORM https://t.co/k8Epyy0orm