Cost Controls Lead Cisco (CSCO) to Q2 Beat; Flat Guidance Leaves Investors Guessing
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Cisco Systems (Nasdaq: CSCO) is lower in late trading Wednesday following second-quarter results issued after the market closed.
Revenue at the networking equipment and IT giant rose 5.2 percent to $1.1 billion, net income improved 44 percent to $3.1 billion, and EPS was 59 cents. After adjusting for certain one-time items, net income was $2.7 billion, for EPS of 51 cents.
The Street consensus was looking for revs of $12.06 billion and EPS of 48 cents.
Cash flows improved by about $200 million to $3.3 billion.
Adjusted gross margin came in at 62.3 percent, topping expectations calling for 61.8 percent.
Looking ahead, Cisco sees third-quarter 2013 EPS of 48 cents to 50 cents, compared with consensus views calling for 49 cents. Revs are expected to be up four percent to six percent.
In terms of the future, we are making solid progress towards our goal of becoming the #1 IT company in the world. As new markets grow and are created, such as the Internet of Everything, it's very easy to see how the intelligent network is at the center of that future," commented CEO John Chambers. "Our customers already understand that Cisco has the architectures, solutions and services to best help them deliver the business results they need and we are honored to work with them and serve them each and every day."
Cisco is down about 1.8 percent.
Revenue at the networking equipment and IT giant rose 5.2 percent to $1.1 billion, net income improved 44 percent to $3.1 billion, and EPS was 59 cents. After adjusting for certain one-time items, net income was $2.7 billion, for EPS of 51 cents.
The Street consensus was looking for revs of $12.06 billion and EPS of 48 cents.
Cash flows improved by about $200 million to $3.3 billion.
Adjusted gross margin came in at 62.3 percent, topping expectations calling for 61.8 percent.
Looking ahead, Cisco sees third-quarter 2013 EPS of 48 cents to 50 cents, compared with consensus views calling for 49 cents. Revs are expected to be up four percent to six percent.
In terms of the future, we are making solid progress towards our goal of becoming the #1 IT company in the world. As new markets grow and are created, such as the Internet of Everything, it's very easy to see how the intelligent network is at the center of that future," commented CEO John Chambers. "Our customers already understand that Cisco has the architectures, solutions and services to best help them deliver the business results they need and we are honored to work with them and serve them each and every day."
Cisco is down about 1.8 percent.
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