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
Infographic: How Lennar (LEN) performed in Q4 2025
Lennar Corporation (NYSE: LEN) reported total revenues of $9.4 billion for the fourth quarter of 2025, compared to $9.9 billion reported in the same period a year ago. Net earnings
Paychex expected to report higher revenue and earnings for Q2 FY26
Paychex, Inc. (NASDAQ: PAYX), a leading provider of human capital management solutions, is undergoing an AI-driven transformation that enhances both its internal operations and client-facing services. Entering fiscal 2026, the
Signet Jewelers (SIG): A look at the progress made on Grow Brand Love
Shares of Signet Jewelers Limited (NYSE: SIG) fell over 3% on Tuesday. The stock has gained 3% year-to-date. The jewelry retailer delivered strong results for the third quarter of 2026,
