Cisco Starts Fiscal 2019 With Strong Q1 Results

By Chris Lange Updated Jan 11, 2:51PM EST · Published Nov 15, 10:10AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Cisco Starts Fiscal 2019 With Strong Q1 Results — © raisbeckfoto / Getty Images

When Cisco Systems Inc. (NASDAQ: CSCO) reported its fiscal first-quarter financial results after the markets closed on Wednesday, the company posted $0.75 in earnings per share (EPS) and $13.07 billion in revenue. Consensus estimates from Thomson Reuters that had called for $0.72 in EPS and revenue of $12.87 billion. In the same period of last year, Cisco said it had EPS of $0.61 on $12.14 billion in revenue.

During the most recent quarter, total revenue increased 8% year over year, with product revenue up 9% and service revenue up 3%. Revenue by geographic segment: Americas up 5%, EMEA up 11% and APJC up 12%. Product revenue performance was generally broad based, with growth in Applications, up 18%, Security, up 11%, and Infrastructure Platforms, up 9%.

Deferred revenue totaled $16.8 billion, down 9% in total, with deferred product revenue down 24%. Deferred service revenue was up 1%.

Looking ahead to the fiscal second quarter, the company expects to see EPS in the range of $0.71 to $0.73 and revenue growing between 5% and 7% year over year. Consensus estimates call for $0.72 in EPS and $12.53 billion in revenue.

[nativounit]

Chuck Robbins, board chair and chief executive of Cisco, commented:

We had a strong start to fiscal 2019 and we believe our opportunity has never been greater. Our customers are looking to Cisco as a trusted partner to help them operate in a multi-cloud world and to transform their businesses. Our strategy is working and we are well positioned with our growing and differentiated portfolio across multiple domains to bring our customers a more secure, automated and simple IT infrastructure.

Shares of Cisco were last seen up 4% at $46.28 on Thursday, with a consensus analyst price target of $51.44. The stock has a 52-week trading range of $35.81 to $49.47.

[recirclink id=505493]

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.