Categories Earnings, Technology
Cisco Systems (CSCO) Q2 profit beats estimates, guides Q3 within consensus
Cisco Systems Inc. (NASDAQ: CSCO) reported a 2% rise in earnings for the second quarter of 2020 helped by lower costs and expenses despite a 4% decline in the top line. The results exceeded analysts’ expectations. Further, the company guided third-quarter revenue and earnings in-line with the consensus view.
Adjusted earnings increased by 5% to $0.77 per share, which is above the analysts’ expectations of $0.76. Revenue declined by 4% to $12 billion, which is higher than the consensus estimates of $11.98 billion.
The top line was hurt by lower product revenue, which partially offset higher service revenue. A decline in the infrastructure platforms and applications overshadowed the security growth in the product revenue. Geography-wise, the company experienced a decline in all the regions.
Looking ahead into the third quarter, the company expects revenue to decline by 1.5-3.5% year-over-year and adjusted earnings in the range of $0.79-0.81 per share. The consensus estimates EPS of $0.80.
The company has declared a quarterly dividend of $0.36 per common share, up 3% over the previous quarter. The dividend is payable on April 22, 2020, to all shareholders of record on April 3, 2020. The increased dividend shows confidence in the strength of the company’s ongoing cash flows and commitment to shareholder return.
Cisco has been managing to transform itself into a networking service provider from a hardware company as the future lies in software as a subscription. The company believes this transformation could turn the tables around and achieve better returns.
During the second quarter, the company managed to return $2.4 billion to shareholders through share buybacks and dividends. There remained $11.8 billion authorized for stock buyback under the current stock repurchase program with no termination date.
Most Popular
Key metrics from Kroger’s (KR) Q3 2025 earnings results
The Kroger Co. (NYSE: KR) reported its third quarter 2025 earnings results today. Total company sales rose to $33.9 billion from $33.6 billion in the same period last year. Identical
Dollar General (DG) Q3 2025 Earnings: Key financials and quarterly highlights
Dollar General Corporation (NYSE: DG) reported its third quarter 2025 earnings results today. Net sales increased 4.6% year-over-year to $10.65 billion. Same-store sales increased 2.5%. Net income was $282.7 million, or
HRL Earnings: All you need to know about Hormel Foods’ Q4 2025 earnings results
Hormel Foods Corporation (NYSE: HRL) reported its fourth quarter 2025 earnings results today. Net sales increased 1.5% year-over-year to $3.18 billion. Organic sales were up 2%. Net loss attributable to Hormel
