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Cisco Systems (CSCO) Beats Earnings, Down Slightly on Job Cuts

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Cisco Systems (CSCO - Free Report) just released its Q4 FY2016 earnings results, posting earnings of $0.58 per share and revenue of $12.6 billion.  

Currently, Cisco has a Zacks Rank #3 (Hold), but it is subject to change following the release of the company’s latest earnings report. Here are 5 key facts from this just announced report below.

Cisco:

1. Beat earnings estimates. The company posted earnings of $0.58 per share (Excluding $0.02 from non-recurring items), beating our Zacks Consensus Estimate of $0.55.      

2. Beat revenue estimates. The company saw revenue figures of $12.6 billion, beating our estimate of $12.55 billion. 

3. "We had another strong quarter, wrapping up a great year. I am particularly pleased with our performance in priority areas including security, data center switching, collaboration, services as well as our overall performance, with revenues up 2% in Q4 excluding the SP Video CPE business," said Chuck Robbins, CEO of Cisco. "We continue to execute well in a challenging macro environment."

4. Cisco plans to eliminate up to 5,500 positions (or 7 percent) from its overall workforce in a restructuring effort meant to “optimize our cost base in lower growth areas of our portfolio and further invest in key priority areas such as security, IoT (Internet of Things), collaboration, next generation data center and cloud.” The company will begin to take action on this plan in the coming quarter.

5. CSCO was down $0.25, or 0.81%, to $30.49 as of 4:25 p.m. EDT in after-hours trading shortly after its earnings report was released.

Here’s a graph that looks at Cisco’s latest earnings performance:

CISCO SYSTEMS Price and EPS Surprise

CISCO SYSTEMS Price and EPS Surprise | CISCO SYSTEMS Quote

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP) based networking and other products related to the communications and information technology industry worldwide. The company serves businesses of various sizes, public institutions, governments, and communications service providers. Cisco Systems, Inc. sells its products directly, as well as through channel partners, such as systems integrators, service providers, other resellers, and distributors. The company was founded in 1984 and is headquartered in San Jose, California.

Check back later for our full analysis on Cisco’s latest quarterly earnings report!

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