Cost Efficiencies, Innovation Drive Cisco (CSCO) to Q1 Earnings Beat
Sales rose 5.5 percent to $11.88 billion in the quarter, from $11.26 billion the previous year. Net income increased 18 percent to $2.09 billion, or 39 cents per share. Adjusting for certain one-time items, EPS came in at 48 cents.
Overall, the Street was looking for revs of $11.81 billion and EPS of 46 cents.
Cisco reported paying $744 million in dividends and buying back about $253 million in stock through the quarter.
Operating margin widened 2.7 points to 22.3 percent.
"We delivered record results this quarter -- with revenue growth of 6 percent and strong earnings per share growth -- demonstrating our vision and strategy are working," said chairman and CEO John Chambers. "Our innovation engine, operational discipline and on-going evolution are enabling us to differentiate in the market."
Cash flow improved about $200 million t $2.5 billion and Cisco ended the period with $45 billion of cash and equivalents.
On its call, Cisco said it sees Q2 non-GAAP EPS of $0.47-$0.48, versus the consensus of $0.47. They see Q2 revs up 3.5%-5.5%, also in-line with estimates.
In late trading, the stock is up over 6 percent.