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.

Cisco Systems (CSCO) Q2 2020 Earnings Review

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.

Read: Akamai Technologies Q4 earnings snapshot

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.

We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

PayPal Holdings (PYPL) Q1 2021 revenue up 31%; earnings beat

PayPal Holdings Inc. (NASDAQ: PYPL) reported stronger-than-expected earnings and revenues for the first quarter of 2021. Shares of the payment service provider gained during Wednesday’s extended trading session soon after

Infographic: How Twilio (TWLO) performed in Q1 2021

Twilio (NYSE: TWLO) reported first quarter 2021 earnings results today. Revenue increased 62% year-over-year to $590 million. GAAP net loss widened to $206 million, or $1.24 per share, compared to

Uber Technologies reports Q1 loss of 6 cents per share: Infographic

Uber Technologies (NYSE: UBER) reported first-quarter 2021 financial results after the regular market hours on Wednesday. The ride-hailing company reported Q1 revenue excluding the UK accrual of $3.5 billion, up

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top