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Cisco (CSCO) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended January 2024, Cisco Systems (CSCO - Free Report) reported revenue of $12.79 billion, down 5.9% over the same period last year. EPS came in at $0.87, compared to $0.88 in the year-ago quarter.
The reported revenue represents a surprise of +0.53% over the Zacks Consensus Estimate of $12.72 billion. With the consensus EPS estimate being $0.84, the EPS surprise was +3.57%.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Cisco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Remaining Performance Obligations (RPO) - Total: $35.70 billion versus the two-analyst average estimate of $32.14 billion.
Revenue- Product: $9.23 billion compared to the $9.29 billion average estimate based on nine analysts. The reported number represents a change of -9.1% year over year.
Revenue- Services: $3.56 billion versus the nine-analyst average estimate of $3.43 billion. The reported number represents a year-over-year change of +3.6%.
Revenue- Product- Collaboration: $989 million versus the eight-analyst average estimate of $986.65 million.
Revenue- Product- Networking: $7.08 billion compared to the $7.21 billion average estimate based on eight analysts. The reported number represents a change of +5% year over year.
Revenue- Product- Security: $973 million compared to the $942.65 million average estimate based on eight analysts. The reported number represents a change of +3.2% year over year.
Revenue- Product- Observability: $188 million versus $181.38 million estimated by seven analysts on average.
Non-Gaap Gross Margin- Service: $2.51 billion versus the five-analyst average estimate of $2.29 billion.
Non-Gaap Gross Margin- Product: $6.02 billion versus the five-analyst average estimate of $6.05 billion.
Shares of Cisco have returned -1.9% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Cisco (CSCO) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended January 2024, Cisco Systems (CSCO - Free Report) reported revenue of $12.79 billion, down 5.9% over the same period last year. EPS came in at $0.87, compared to $0.88 in the year-ago quarter.
The reported revenue represents a surprise of +0.53% over the Zacks Consensus Estimate of $12.72 billion. With the consensus EPS estimate being $0.84, the EPS surprise was +3.57%.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Cisco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Remaining Performance Obligations (RPO) - Total: $35.70 billion versus the two-analyst average estimate of $32.14 billion.
- Revenue- Product: $9.23 billion compared to the $9.29 billion average estimate based on nine analysts. The reported number represents a change of -9.1% year over year.
- Revenue- Services: $3.56 billion versus the nine-analyst average estimate of $3.43 billion. The reported number represents a year-over-year change of +3.6%.
- Revenue- Product- Collaboration: $989 million versus the eight-analyst average estimate of $986.65 million.
- Revenue- Product- Networking: $7.08 billion compared to the $7.21 billion average estimate based on eight analysts. The reported number represents a change of +5% year over year.
- Revenue- Product- Security: $973 million compared to the $942.65 million average estimate based on eight analysts. The reported number represents a change of +3.2% year over year.
- Revenue- Product- Observability: $188 million versus $181.38 million estimated by seven analysts on average.
- Non-Gaap Gross Margin- Service: $2.51 billion versus the five-analyst average estimate of $2.29 billion.
- Non-Gaap Gross Margin- Product: $6.02 billion versus the five-analyst average estimate of $6.05 billion.
View all Key Company Metrics for Cisco here>>>Shares of Cisco have returned -1.9% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.