Cisco Earnings: CSCO Stock Falls 5% on Disappointing Outlook

Cisco (NASDAQ:CSCO) earnings for the tech networking company’s fiscal fourth quarter of 2020 have CSCO stock falling after-hours Wednesday. That’s despite its adjusted earnings per share of 80 cents beating Wall Street’s estimate of 74 cents. Its revenue of $12.15 billion also comes in above analysts’ estimate of $12.08 billion.

cisco (CSCO) logo on an office building

Source: Ken Wolter / Shutterstock.com

Here are some additional highlights from the most recent Cisco earnings report.

  • Adjusted per-share earnings are down 4% from 83 cents during the same time last year.
  • Revenue for the quarter comes in 9% lower from the $13.43 billion reported in fiscal Q4 2019.
  • Operating income of $3.25 billion is a 12% decrease year-over-year from $3.69 billion.
  • The Cisco earnings report also has net income coming in at $2.64 billion.
  • That’s a 19% increase compared to its net income of $2.21 billion in the same period of the year prior.

Kelly Kramer, CFO of Cisco, said this about the earnings results.

“We executed well in Q4, delivering strong margins despite the very challenging environment. Software subscriptions now make up 78% of our software revenue and remaining performance obligations continued to grow strongly in the quarter, reflecting the strength of our portfolio of software and services.”

Cisco also includes guidance for fiscal Q2 2021 in its earnings report. It expects adjusted EPS of 69 cents to 71 cents. Unfortunately, Wall Street is estimating adjusted EPS of 76 cents for the quarter.

CSCO stock was down 5% after-hours Wednesday but closed out normal trading hours up 1.9%.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/08/cisco-earnings-hit-csco-stock/.

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