SAN JOSE - Cisco Systems Inc (NASDAQ:CSCO)., the prominent San Jose-based network equipment maker, has reported a robust fiscal first-quarter performance that outstripped Wall Street's expectations. The company announced a profit of $3.64 billion, equivalent to 89 cents per share. After adjustments for one-time gains and costs, the earnings stood at $1.11 per share, which is notably higher than the average analysts' estimate of $1.03 per share from a Zacks Investment Research survey.
The tech giant also surpassed revenue expectations, posting $14.67 billion for the quarter against the forecasted $14.61 billion by Zacks analysts. Looking ahead, Cisco anticipates its fiscal second-quarter earnings to be in the range of 82 to 84 cents per share with revenue projections of $12.6 billion to $12.8 billion. For the full year, the company expects earnings between $3.87 and $3.93 per share and revenues to land between $53.8 billion and $55 billion.
InvestingPro Insights
InvestingPro's real-time data and insights provide a deeper understanding of Cisco Systems Inc.'s financial performance. With a market capitalization of $215.81 billion and a P/E ratio of 17.3 as of the end of 2023, Cisco is a significant player in the Communications Equipment industry.
InvestingPro Tips highlight Cisco's strong financial health, showing high earnings quality as its free cash flow exceeds net income. Additionally, the company has been experiencing accelerating revenue growth, evident in the 10.55% increase in the last twelve months of 2023. Another noteworthy point is Cisco's ability to yield high returns on invested capital, making it a potentially profitable investment.
Moreover, Cisco's stockholders benefit from high returns on book equity and the company's commendable practice of maintaining dividend payments for 13 consecutive years. This is supported by a dividend yield of 2.93% and a dividend growth of 2.63% in the last twelve months of 2023.
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