Cisco Reports Earnings, Shares Fall After-Hours

For its 2013 fiscal year, Cisco reported adjusted EPS of $2.02 on revenues of $48.6 billion, compared with EPS of $1.85 on revenues of $46.1 billion in 2012. The consensus estimates called for annual EPS of $2.01 on revenues of $48.61 billion.

The company does not provide any outlook information until its conference call at 4:30 p.m. The consensus estimates for the first quarter of fiscal year 2014 call for EPS of $0.51 on revenues of $12.46 billion. Full-year 2014 estimates call for EPS of $2.12 on revenues of $51.27 billion.

The company’s CEO said:

In every case, we exceeded the midpoint of our guidance. We also generated $4 billion in operating cash flow in the quarter, another record. … Now, more than ever, our customers and our partners want Cisco’s help navigating the inconsistent global landscape successfully. They recognize the benefit of a partner who is not only the leader in their product categories, but can bring technologies and solutions together in an architecture to lower operating costs, reduce time to results, and future proof their investments.

Cisco repurchased $2.8 billion of its own stock in the fiscal year and said there is $3.1 billion remaining in the buyback program.

The company also noted its five acquisitions during the fiscal year, the latest of which is its $2.7 billion deal for Sourcefire Inc. (NASDAQ: FIRE).

Net income rose 8.5% on a non-GAAP basis and 24.2% on a GAAP basis for the year. In the quarter, net income rose 18.4% year-over-year on a GAAP basis and EPS rose 16.7%.

Shares of Cisco are down about 2% in after-hours trading, at $25.87 in a 52-week range of $16.68 to $26.49. Thomson Reuters had a consensus analyst price target of around $26.90 before today’s results were announced.