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Cisco (CSCO) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended April 2023, Cisco Systems (CSCO - Free Report) reported revenue of $14.57 billion, up 13.5% over the same period last year. EPS came in at $1.00, compared to $0.87 in the year-ago quarter.
The reported revenue represents a surprise of +1.27% over the Zacks Consensus Estimate of $14.39 billion. With the consensus EPS estimate being $0.97, the EPS surprise was +3.09%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cisco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Product-Secure, Agile Networks: $7.55 billion versus $6.90 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +28.6% change.
Revenue- Product-Internet for the Future: $1.39 billion compared to the $1.48 billion average estimate based on nine analysts. The reported number represents a change of +5.1% year over year.
Revenue- Product-Optimized Application Experiences: $204 million versus $205 million estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.
Revenue- Services: $3.48 billion versus $3.60 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +2.7% change.
New Products- End-to-End Security: $958 million compared to the $1.02 billion average estimate based on nine analysts. The reported number represents a change of +2.1% year over year.
Revenue- Products-Collaboration: $985 million versus $1.09 billion estimated by nine analysts on average.
Revenue- Products: $11.09 billion compared to the $10.80 billion average estimate based on nine analysts. The reported number represents a change of +17.4% year over year.
Revenue- Product-Other: $3 million versus $2.53 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +50% change.
Non-Gaap Gross profit- Service: $2.34 billion compared to the $2.48 billion average estimate based on seven analysts.
Non-Gaap Gross profit- Product: $7.15 billion compared to the $6.75 billion average estimate based on seven analysts.
Shares of Cisco have returned -6.7% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Cisco (CSCO) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended April 2023, Cisco Systems (CSCO - Free Report) reported revenue of $14.57 billion, up 13.5% over the same period last year. EPS came in at $1.00, compared to $0.87 in the year-ago quarter.
The reported revenue represents a surprise of +1.27% over the Zacks Consensus Estimate of $14.39 billion. With the consensus EPS estimate being $0.97, the EPS surprise was +3.09%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cisco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Product-Secure, Agile Networks: $7.55 billion versus $6.90 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +28.6% change.
- Revenue- Product-Internet for the Future: $1.39 billion compared to the $1.48 billion average estimate based on nine analysts. The reported number represents a change of +5.1% year over year.
- Revenue- Product-Optimized Application Experiences: $204 million versus $205 million estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.
- Revenue- Services: $3.48 billion versus $3.60 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +2.7% change.
- New Products- End-to-End Security: $958 million compared to the $1.02 billion average estimate based on nine analysts. The reported number represents a change of +2.1% year over year.
- Revenue- Products-Collaboration: $985 million versus $1.09 billion estimated by nine analysts on average.
- Revenue- Products: $11.09 billion compared to the $10.80 billion average estimate based on nine analysts. The reported number represents a change of +17.4% year over year.
- Revenue- Product-Other: $3 million versus $2.53 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +50% change.
- Non-Gaap Gross profit- Service: $2.34 billion compared to the $2.48 billion average estimate based on seven analysts.
- Non-Gaap Gross profit- Product: $7.15 billion compared to the $6.75 billion average estimate based on seven analysts.
View all Key Company Metrics for Cisco here>>>Shares of Cisco have returned -6.7% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.