Cisco (CSCO) Fails to Impress With Q1 Beat; Gross Margins Miss the Mark; Guides Q2 Well Below Estimate
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Price: $23.95 --0%
EPS Growth %: +6.3%
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CNET, CNTF, ZLC, More
EPS Growth %: +6.3%
Financial Fact:
Interest income: 160M
Today's EPS Names:
CNET, CNTF, ZLC, More
Trade CSCO Now!
Cisco Systems (NASDAQ: CSCO) posted slightly better-than-expected first-quarter results on Wednesday, but shares of the company are down more than 11 percent in aftermarket movement on disappointing guidance.
The networking equipment company reported first-quarter earnings of 42 cents per share, 2 cents better than the analysts estimate of 40 cents per share.
Revenue for the company rose 19 percent to $10.75 billion, compared to the market consensus of $10.73 billion.
Gross margin for Cisco in the quarter was 62.8 percent, missing the Street's expectations.
"Cisco delivered solid financial results, during a challenging economic environment. While we have seen capital spending moderate in some areas of our business, our execution in the areas we can control and influence speak to the success and relevance of the company's strategy," said John Chambers, chairman and CEO, Cisco. "Our position in the market, including continued product innovation, market share momentum and operational excellence, positions us for growth and flexibility well into the future as we strengthen our role as a trusted business partner to our customers."
Looking forward, the company sees second-quarter sales up 3 percent to 5 percent, implying sales of $10.11 billion to $10.31 billion, missing the Street's view of $11.08 billion.
Sees Q2 EPS 32 cents to 35 cents, below the consensus of 42 cents.
For the full year 2011, Cisco sees sales up 9 percent to 12 percent.
UPDATE: Click here to see some highlights from Cisco's Q1 conference call.
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The networking equipment company reported first-quarter earnings of 42 cents per share, 2 cents better than the analysts estimate of 40 cents per share.
Revenue for the company rose 19 percent to $10.75 billion, compared to the market consensus of $10.73 billion.
Gross margin for Cisco in the quarter was 62.8 percent, missing the Street's expectations.
"Cisco delivered solid financial results, during a challenging economic environment. While we have seen capital spending moderate in some areas of our business, our execution in the areas we can control and influence speak to the success and relevance of the company's strategy," said John Chambers, chairman and CEO, Cisco. "Our position in the market, including continued product innovation, market share momentum and operational excellence, positions us for growth and flexibility well into the future as we strengthen our role as a trusted business partner to our customers."
Looking forward, the company sees second-quarter sales up 3 percent to 5 percent, implying sales of $10.11 billion to $10.31 billion, missing the Street's view of $11.08 billion.
Sees Q2 EPS 32 cents to 35 cents, below the consensus of 42 cents.
For the full year 2011, Cisco sees sales up 9 percent to 12 percent.
UPDATE: Click here to see some highlights from Cisco's Q1 conference call.
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