17 de August de 2018

Is Cisco (CSCO) Still a Buy After Hitting 18-Year High?

Shares of Cisco CSCO surged as much as 5.1% higher on Thursday, the day after the storied multinational conglomerate reported its Q4 earnings. The firm beat estimates on both the top and bottom line, helping bring its stock price to an 18-year high.

After this solid run, some investors may want to realize their gains, but it seems that this old dog truly can learn new tricks. But does this mean Cisco is still a compelling buy at this new high? Let’s take a closer look.

By the Numbers

Wednesday’s results marked its third-straight quarter of revenue growth, a welcome trend for Cisco, which had previously endured a two-year decline in topline performance. Cisco posted non-GAAP earnings of $0.70 per share, beating our Zacks Consensus Estimate by a penny and representing 14.7% year-over-year growth. Revenues rose 6% YoY to $12.84 billion, surpassing our estimate of $12.76 billion. Moreover, Cisco saw an 8% YoY net income boost to $3.3 billion.

Product sales, which account for 54% of Cisco’s total revenue, jumped 7% to reach $9.64 billion. Sales in Cisco’s services segment, which represented the remaining 46%, grew 3% to hit $3.2 billion.

Geographically, Cisco saw an 8% revenue jump in the Europe, Middle East, and Africa region, 6% in the Asia-Pacific, Japan, Greater China, and 5% in the Americas.

Cisco’s product revenue was a key highlight. The company posted a 12% surge in security growth, along with 10% in applications, and 7% in infrastructure platforms. Investors should note that infrastructure platforms makeup Cisco’s largest segment, and accounted for about 58% of Q4 revenues.   

(For more a detailed breakdown of Cisco’s earnings release, also read: Cisco Surpasses Q4 Earnings Revenues Estimates)

Bright Future Prospects

Cisco has continuined to expand through strategic investments, acquisitions, and other key initiatives. In Q4, Cisco closed its transaction with Accompany, a private AI-driven relationship intelligence platform. Moreover, Cisco announced its plans to acquire July Systems and Duo Security, moves that will bolster its cloud and security capabilities.

Cisco is the largest player in the networking space, maintaining a solid foothold in the router and switch market, as well as in the data center business. Cisco is currently focusing on wireless carrier network development, making multiple acquisitions as it positions itself to become a leading provider of mobile network management services.

Another solid future-proofing move was its creation of the Unified Computing System. It does not require as many computers and servers to operate, reducing costs for Cisco and its clients, which makes it more compelling to enterprise clients. Cisco’s current client portfolio already includes big names such as Intel INTC, Microsoft MSFT, Oracle ORCL, Apple AAPL, and Alphabet GOOGL, to name a few.

The chart below is a testament to Cisco’s strong operational performance compared to industry peers.

Cisco’s extensive global partnership network also plays a big role in its continued growth and is expected to help the company attract new customers. Still, investors should also note that this leaves Cisco vulnerable to unfavorable macroeconomic conditions, including a budding trade war with China. As the WSJ notes, the list of proposed tariffs by the White House includes switches and routers, some of which Cisco makes in China and imports to the US.

But another important point is management’s continued optimism. Management now expects Q1 2019 revenue to grow between 5% and 7% year-over-year, along with non-GAAP EPS of $0.70-$0.72, and a non-GAAP gross margin of 63% – 64%, compared to the current level of 62.9%.

These values are higher than our current Zacks Consensus Estimates, which has Cisco pegged at $12.59 billion in revenues, which would mark a 3.7% YoY increase. Our EPS estimate stands at $0.69, or 13.1% in YoY growth.

Key Metrics

Investors should take note of Cisco’s 12-Month Forward P/E Ratio of 15.2x, which represents a discount compared to the “Computer and Technology” industry’s average of 19.8x. This is lower than the ratio has been in recent months, and signifies that the firm could still be undervalued.

Here is another point that investors may find interesting:

While Cisco’s margins consistently fell from 2003 to 2014, they have started to rebound. Although Cisco faces stiff competition, margins are trending upward, and management’s most recent guidance would mark a return to 2010 levels.

The company returned $7.5 billion to shareholders in Q4 through stock repurchases, and is currently sitting on $46.5 billion in cash. Cisco completed $17.55 billion in stock repurchases during its fiscal 2017, compared to just $3.69 billion the year before. The firm has $19 billion remaining under the current repurchase program, with no termination date. It also issued $6 billion in dividends.

While Cisco has made a particularly large amount of acquisitions, it has more than enough capital to do so. Moreover, it is well-positioned to continue utilizing its capital for new growth initiatives.

Outlook

The stock currently sits at a Zacks Rank #3 (Hold), although this could change as analysts continue to digest Wednesday’s news and revise estimates. While some investors may not like the firm’s current stock price, it seems that there is still enough gas in the tank to maintain its current bullish trend.

Investors should still note that Cisco’s valuation, while appealing from a Forward 12-Month P/E perspective, appears stretched based on its Price/Book ratio. In other words, it is also possible that optimism about the firm’s future has already been baked into the price. But even if investors are not interested in making a play here, Cisco is worth keeping on the radar.

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Article source: https://finance.yahoo.com/news/cisco-csco-still-buy-hitting-214609488.html

Cisco Shows It Can Still Grow

Almost everything went right for Cisco Systems (NASDAQ:CSCO) during its fiscal fourth quarter. The networking hardware company was able to beat analyst estimates for both revenue and earnings, and its guidance was well ahead of expectations. The core switching business performed well, and smaller businesses like security and data center put up double-digit revenue growth. The company is shifting toward software and subscriptions, and those efforts are starting to show results.

The headline numbers

Cisco reported fourth-quarter revenue of $12.84 billion, up 5.9% year over year and $80 million above the average analyst estimate. Non-GAAP earnings per share came in at $0.70, ahead of analyst expectations by $0.01, and up 15% from the prior-year period.

Image source: Cisco.

Outside of “other products,” all of Cisco’s segments produced growth during the fourth quarter:

Data source: Cisco.

Switches and servers

Driving growth in the infrastructure platforms segment was the Catalyst 9000 line of switches. These latest switches from Cisco come as part of a subscription package, and the company has had success moving its customers over to this new model. The platform now has roughly 9,650 customers, up from 5,800 at the end of the third quarter. CEO Chuck Robbins said during the earnings call that the Catalyst 9000 has been ”the fastest ramping product that we’ve ever built.”

Also pushing up infrastructure platforms revenue was Cisco’s data center business, which includes its UCS servers and HyperFlex multicloud platform. The data center segment produced “very strong double-digit growth,” according to CFO Kelly Kramer. Offsetting some of this growth was a decline in routing sales, driven by weak sales to service providers.

Applications and security

Cisco has made quite a few software acquisitions over the past few years as part of its strategy to become a more software-centric company. That includes the oddly timed $3.7 billion acquisition of AppDynamics last year and the $2.35 billion purchase of Duo Security earlier this month.

These acquisitions have helped drive growth in Cisco’s applications and security segments. The 10% growth in applications revenue was driven by growth across all the different businesses making up the segment, with strong growth from unified communications, telepresence, conferencing, and AppDynamics.

Robbins laid out the company’s security strategy during the earnings call: “Security continues to be our customers’ No. 1 concern, and it is a top priority for us. Our strategy is to simplify and increase security efficacy through an architectural approach with products that work together and share analytics and actionable-threat intelligence.”

Robbins also touched on how the Duo Security acquisition will fit in: “Duo’s [software-as-a-service] delivered solution will expand our cloud security capabilities to help enable any user on any device to securely connect to any application on any network. Combining Cisco’s network, end point, and cloud security platform with Duo’s zero-trust authentication and access solutions, we will be able to further enhance the industry’s broadest and most effective security architecture in the market.”

More growth ahead

On top of beating estimates for the fourth quarter, Cisco provided solid guidance for the first quarter of fiscal 2019. The company expects to report year-over-year revenue growth between 5% and 7%, along with non-GAAP EPS between $0.70 and $0.72. Both ranges were above what analysts were expecting.

One thing to note about Cisco’s guidance: The switch to the ASC 606 revenue recognition standard will benefit revenue growth in the first quarter by approximately 1%. On a comparable basis, revenue will grow between 4% and 6%, which still beats out the average analyst estimate.

Cisco is benefiting from strong demand for its products in what Robbins called “a consistent global economic scenario.” He pointed to a few things that could go wrong, including a strengthening dollar, uncertainty in emerging markets, and tariffs. But Cisco isn’t currently feeling much of an impact from any of those issues.

It’s hard to say whether Cisco will be able to maintain a mid-single-digit growth rate. But for now, the company is enjoying its strongest growth in years.

Article source: https://www.fool.com/investing/2018/08/16/cisco-shows-it-can-still-grow.aspx

Cisco earnings send stock higher amid cautious optimism from …

Cisco Systems Inc. shares rallied Thursday after analysts appeared in agreement that the networking company is turning the corner when it comes to its shift into software and subscriptions.

Cisco

CSCO, +2.83%

 shares rose as high as $46.09 Thursday, and were last up 3.9% at $45.56, on track for their highest close since mid-May. The rise followed the company’s late Wednesday earnings and outlook, which topped Wall Street estimates.

Read also: Cisco revenue is growing again, and headed for more

Cisco shares are up 19% on the year while the Dow Jones Industrial Average

DJIA, +1.51%

which counts Cisco as a component, is up 3.5%, the SP 500 index

SPX, +0.70%

  has gained 6.4%, and the tech-heavy Nasdaq Composite Index

COMP, +0.32%

  has advanced 13.4% over the same period.

Driving some of the share momentum were comments from Chief Financial Officer Kelly Kramer, who said late Wednesday that total deferred revenue rose 6%, with deferred product revenue up 15% and deferred services revenue up 1% for the year, but added there was a 28% increase in unbilled deferred revenue, which is not noted on the balance sheet.

Strength in deferred revenue is important because that makes Cisco more predictable as it shifts over to software and subscription sales, Glenn O’Donnell, research director at Forrester Research, told MarketWatch. Notably, Cisco’s Catalyst 9000 line of network switches are a key components of this strategy as they are the first Cisco switches to require multiyear software contracts for operation.

BMO Capital analyst Tim Long, however, remained a little skeptical of how fast Cisco was shifting over to subscriptions while acknowledging the deferred revenue strength.

“The transition to a more software and subscription-based model continues to take shape,” Long, who has a market perform rating and raised his price target to $48, said in a note. “We are encouraged by continued growth in deferred product revenue and ramping subscription offerings, however despite these positive trends, revenue from recurring sources was stagnant at 32% and we remain disappointed with the overall slow pace of the transition.”

Other analysts pointed to other milestones, the third quarter in a row of revenue growth notwithstanding.

Piper Jaffray analyst James Fish, who has a overweight rating and a $50 price target, in a note entitled “Here Comes the Boom: Core Platforms Drive FQ4 Upside,” said growth was mainly organic for the quarter and that it was Cisco’s best top-line quarter since the fiscal second quarter of 2015.

“Importantly, product backlog was $6.6B and up 38% Y/Y, a positive indication of future product revenue,” Fish said.

Wells Fargo analyst Aaron Rakers, who has an outperform rating and a $50 price target, noted that product order growth at Cisco was its strongest since the second quarter of 2012.

Jefferies analyst George Notter, who has a buy rating and a $50 price target, said that “investor perceptions about the company as a ‘melting ice cube’ fighting against workload migration, market share pressures, etc. are wrong.”

“To the contrary — as networks get more complex — we think Cisco’s end-to-end network capabilities become increasingly strategic to Enterprise and Service Provider customers,” Notter said in a note.

But mostly, analysts appeared cautiously optimistic about Cisco.

J.P. Morgan analyst Samik Chatterjee, who has an overweight rating and raised his price target to $59, said Cisco’s results validate its strategic transformation, but was cautious.

“However, while we are starting to see the early benefits of Cisco’s transformation in the form of accelerating revenue growth, we believe there are additional legs to the earnings growth trajectory in the future from greater leverage of the revenue growth to profits which is currently limited by the strong pace of investments by the company (including in bolt-on technology acquisitions, which we believe are accounting for roughly 60% of the y/y increase in operating expenses).”

Read: Cisco to acquire security unicorn Duo for $2.35 billion

Raymond James analyst Simon Leopold, who has an outperform rating and a $50 price target, also praised Cisco on its execution but didn’t want to get too excited.

“We see enterprise demand as healthy and saw improvement from the previously weak service provider vertical.” Leopold said. “We worry about the global macro presenting risk, and imagine some grumble about deceleration in metrics such as deferred revenue growth. We won’t look this gift horse in the mouth but strive to keep our model conservative.”

MKM Partners Michael Genovese, who has a neutral rating and a $51 price target, said Cisco’s guidance showed optimism for 5G technology adoption.

“Management said the Service Provider order strength was from a handful of customers, which we think are concentrated in Asia, and is not yet driven by 5G network build implementation which will begin in a year,” Genovese said. “However, it sounds to us like the improvement in Service Provider demand Cisco is seeing is related to capacity increases at the Edge of the network (i.e., Cell Sites, Central Offices, Data Centers) in order to prepare the transport network for 5G network requirements.”

Needham analyst Alex Henderson, who has a hold rating, remarked that Cisco’s $6 billion repurchase of 138 million shares, with $19 billion in authorization left, “should continue to make the shares look low-risk as Cisco could still pull in a large number of shares.”

The average analyst price target for Cisco shares rose to $50.33 from a previous $49.26 as nearly a quarter of the analysts covering the stock raised their price targets, according to FactSet. Of the 29 analysts who cover Cisco, 21 have buy or overweight ratings, eight have hold ratings and no analysts have sell or underweight ratings.

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Wallace Witkowski is a MarketWatch news editor in San Francisco. Follow him on Twitter @wmwitkowski.

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Article source: https://www.marketwatch.com/story/cisco-earnings-send-stock-higher-amid-cautious-optimism-from-analysts-2018-08-16

Booming Walmart, Cisco results show US economy’s strength is real …

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Shoppers load a television set into their cart at a Walmart store in Secaucus, New Jersey.

The strong GDP economic data for the June quarter is showing up in the real economy.

Major U.S. companies including Walmart and Cisco are confirming the positive macro data by posting their best financial results in many years. The reports indicate broad-based strength in the domestic economy.

Last month the government said second-quarter GDP grew at 4.1 percent, the fastest pace in nearly four years.

Perhaps no single company is a better barometer of economic health than Walmart, the country’s largest retailer. In 2016, the company said more than 40 percent of the U.S. population, or 140 million people, shopped at Walmart on a weekly basis.

And now Walmart’s sales growth is better than at any time in the past decade.

The retailer’s shares soared 9 percent Thursday after it posted its highest domestic same-store sales growth in more than 10 years for its second quarter. Walmart reported an increase of 4.5 percent versus the Thomson Reuters estimate of 2.4 percent.

It is not just retail, big tech bellwethers for the economy are doing great too.

Cisco is regarded as a good barometer of enterprise spending due to its market leadership in key technology products. It sells networking switches and routers, which companies use to add capacity to serve their customers.

The company’s shares rose 4 percent Thursday, a day after the largest networking switch and router maker reported better-than-expected fiscal fourth-quarter earnings and gave guidance above consensus for its next quarter.

One Wall Street analyst cited the economy’s strength as a driver for Cisco’s solid numbers.

“We see [Cisco's] performance as reflective of good execution, including the evolution to a more software centric business and new product cycles, and a healthy macro,” Raymond James analyst Simon Leopold said in a note to clients. “We see enterprise demand as healthy.”

Cisco CEO Chuck Robbins confirmed that the U.S. and global economic expansion helped the company’s strong results.

“This quarter … it was broad-based for us,” Robbins said on CNBC’s “Squawk on the Street” Thursday. “Across all our customer segments, our enterprise business grew 11 percent this quarter in orders, commercial was up 9.”

In similar fashion, AMD’s optimism over its server chip business last month shows the general economy is humming and consumer demand is healthy. The chipmaker sells high-profit-margin server chips to data centers and cloud computing providers, which companies also use to add capacity for their products and services.

AMD reported better-than-expected second-quarter sales and earnings results in late July. The company’s revenue soared 53 percent year over year in that quarter.

The chipmaker’s CEO, Lisa Su, said on the earnings call that the company’s chip sales to data centers “increased significantly” and “saw some nice acceleration.” She also added that the personal computer market is “doing a little bit better than most people expected.”

“We had an outstanding second quarter with strong revenue growth, margin expansion and our highest quarterly net income in seven years,” Su said in the earnings release.

In recent weeks worries over trade wars, tariffs, geopolitical turmoil and emerging market financial crises have dominated the discussion.

But investors should take solace in the mounting evidence from major corporate bellwethers that the state of the U.S. economy is strong and getting better.

Tae Kim

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Article source: https://www.cnbc.com/2018/08/16/booming-walmart-cisco-results-show-us-economys-strength-is-real-and-broad-based.html

Cisco Gives Bullish Outlook Helped by New Products, Software

Ian King (Bloomberg) — Cisco Systems Inc. gave a bullish forecast for the current quarter, boosted by corporate spending on upgrades to computer networks.

Sales in the fiscal first quarter will grow 5 percent to 7 percent from the same period a year earlier, the San Jose, California-based company said Wednesday in a statement. That indicates sales of as much as $12.98 billion, compared with an average analyst estimate of $12.59 billion. Adjusted profit in the quarter ending in October will be 70 to 72 cents a share, the company said. Analysts predicted 69 cents.

Chief Executive Officer Chuck Robbins is remaking Cisco into a provider of networking software and services. At the same time, the company is trying to decrease its traditional dependence on high-priced custom machines that direct the majority of the world’s internet data traffic. That push is paying off with an increasing backlog of deferred revenue. In the near term, a buoyant economy is encouraging companies to update or enlarge their corporate infrastructure and helping bolster Cisco’s traditional business.

The shares closed at $43.86 in regular trading in New York leaving the stock up 15 percent this year. The shares rose about 5 percent in extended trading.

Cisco reported revenue from all regions and all of its major product areas grew in the fiscal fourth quarter from a year earlier. Its hardware division had sales of $7.44 billion, up 7 percent. Software rose 10 percent to $1.34 billion and security revenue gained 12 percent at $627 million. By region, Americas, the biggest source of sales, had the slowest growth at 5 percent. Europe, Middle East and Africa sales were up 8 percent and Asia had 6 percent growth.

“They’re looking for 5 to 7 percent which is arguably better than they’ve seen for a long time,” said Erik Suppiger, an analyst at JMP Securities. “It’s good on an overall basis. It’s encouraging.”

Suppiger said investors want more of the company’s growth in the future to come from software and services. Growth from its hardware business, boosted by a stronger economy, is ‘‘not what we want ultimately,” he said.

Cisco reported progress in reducing its dependence on hardware, with deferred revenue from software and subscriptions increasing 23 percent to $6.1 billion in the quarter.

While Cisco is plowing ahead with an attempt to turn itself into a different company — 19 of 20 acquisitions made since the start of 2016 were software companies, according to Raymond James analyst Simon Leopold — it still gets the majority of its income from switches and routers.

The market for those boxes that connect computers together to form networks and link those networks to the broader internet is changing away from what made Cisco dominant in the industry. Customers increasingly want cheaper hardware and software that’s open and programmable. The company, which in 1999 briefly became the world’s most valuable company, is also trying to field new, more flexible boxes that meet those requirements.

To compensate for that shift to cheaper machinery, Cisco’s new products help customers better monitor data traffic, control user access, and diagnose and fix problems. Many of them are offered as subscriptions, which tie customers to the company over a longer period.

In the three months ended July 28, Cisco reported adjusted profit of 70 cents a share, on revenue of $12.84 billion. That compares with average analyst estimates of 69 cents a share and sales of $12.8 billion. Sales grew about 6 percent from a year earlier, the third consecutive quarterly expansion. Prior to that Cisco had reported lower revenue for seven straight quarters.

Article source: https://www.datacenterknowledge.com/cisco/cisco-gives-bullish-outlook-helped-new-products-software

Cisco Extends Growth Streak on Strong Software Sales

Cisco Systems Inc. on Wednesday reported its third-consecutive quarter of revenue growth, evidence the networking-gear maker’s move to build up its software business is paying off.

Shares of Cisco jumped 6.3% in after-hours trading after finishing the regular day at $43.86.

Cisco’s streak—the company generated $12.84 billion in total revenue…

Article source: https://www.wsj.com/articles/cisco-extends-growth-streak-on-strong-software-sales-1534377123

Cisco earnings Q4 2018 – CNBC.com

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Cisco pops on earnings beat as it shifts to more software and services


Cisco stock rose more than 6 percent on Wednesday after the company reported better-than-expected earnings for the fourth quarter of its 2018 fiscal year, which ended on July 28.

Here’s how the company performed:

  • Earnings: 70 cents per share, excluding certain items, vs. 69 cents per share as expected by analysts, according to Thomson Reuters.
  • Revenue: $12.84 billion, vs. $12.77 billion as expected by analysts, according to Thomson Reuters.

As a whole, revenue was up 6 percent year over year in the quarter, while revenue growth for the entire fiscal year came out to 3 percent, according to a statement.

The majority of Cisco’s revenue comes from sales of hardware like data center networking switches, which is included in the Infrastructure Platforms business segment. That segment generated $7.44 billion, above the FactSet analyst estimate of $7.28 billion. Routing product revenue was down slightly in the quarter because of declines among service provider customers, chief financial officer Kelly Kramer said on a conference call with analysts on Wednesday.

Cisco’s Hyperflex converged data center infrastructure products contributed to the Infrastructure Platforms growth.

“We find ourselves in a lot of head-to-head deals and winning against Nutanix, which is obviously a really tough competitor out there but we feel good about the offer we have,” Kramer said.

The next-largest business segment, Applications, which includes software products like Broadsoft’s cloud contact center technology, was below the $1.4 billion FactSet analyst expectation, at $1.34 billion in revenue.

The Security segment came in above the $614.8 million revenue expectation, at $627 million. And Cisco’s Other Products segment had $232 million in revenue, below the $255.9 million FactSet consensus estimate.

Across the entire 2018 fiscal year, Cisco had a $10.4 billion charge as a result of U.S. tax reform.

Cisco is following Microsoft and other technology companies in adopting new the ASC 606 revenue-recognition standards in the 2019 fiscal year.

“It’s going to accelerate some of our term-based licenses, so we will have to write-off some of our deferred revenue,” Kramer said. “We won’t see that revenue, but we will offset that with acceleration of those offers when we book new orders and bill new orders.” Cisco had $19.7 billion in deferred revenue in the fiscal fourth quarter, up 6 percent year over year.

In the quarter Cisco announced an expanded cloud partnership with Alphabet’s Google and the sale of its service provider video software business to Permira Funds. “We believe the divestiture was the right move to make, but it will impact near-term results,” Piper Jaffray analysts James Fish and Andrew Nowinski wrote in a Monday note.

With respect to guidance, Cisco said that for its fiscal first quarter it’s expecting to register 70-72 cents per share, excluding certain items, on an implied $12.74-12.99 billion in revenue. Analysts had been expecting guidance of 69 cents per share, excluding certain items, on $12.61 billion in revenue, according to Thomson Reuters.

Cisco stock is up about 14 percent since the beginning of 2018.



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Article source: https://www.cnbc.com/2018/08/15/cisco-earnings-q4-2018.html

Cisco rises on strong earnings

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Cisco pops on earnings beat as it shifts to more software and services


Cisco stock rose more than 6 percent on Wednesday after the company reported better-than-expected earnings for the fourth quarter of its 2018 fiscal year, which ended on July 28.

Here’s how the company performed:

  • Earnings: 70 cents per share, excluding certain items, vs. 69 cents per share as expected by analysts, according to Thomson Reuters.
  • Revenue: $12.84 billion, vs. $12.77 billion as expected by analysts, according to Thomson Reuters.

As a whole, revenue was up 6 percent year over year in the quarter, while revenue growth for the entire fiscal year came out to 3 percent, according to a statement.

The majority of Cisco’s revenue comes from sales of hardware like data center networking switches, which is included in the Infrastructure Platforms business segment. That segment generated $7.44 billion, above the FactSet analyst estimate of $7.28 billion. Routing product revenue was down slightly in the quarter because of declines among service provider customers, chief financial officer Kelly Kramer said on a conference call with analysts on Wednesday.

Cisco’s Hyperflex converged data center infrastructure products contributed to the Infrastructure Platforms growth.

“We find ourselves in a lot of head-to-head deals and winning against Nutanix, which is obviously a really tough competitor out there but we feel good about the offer we have,” Kramer said.

The next-largest business segment, Applications, which includes software products like Broadsoft’s cloud contact center technology, was below the $1.4 billion FactSet analyst expectation, at $1.34 billion in revenue.

The Security segment came in above the $614.8 million revenue expectation, at $627 million. And Cisco’s Other Products segment had $232 million in revenue, below the $255.9 million FactSet consensus estimate.

Across the entire 2018 fiscal year, Cisco had a $10.4 billion charge as a result of U.S. tax reform.

Cisco is following Microsoft and other technology companies in adopting new the ASC 606 revenue-recognition standards in the 2019 fiscal year.

“It’s going to accelerate some of our term-based licenses, so we will have to write-off some of our deferred revenue,” Kramer said. “We won’t see that revenue, but we will offset that with acceleration of those offers when we book new orders and bill new orders.” Cisco had $19.7 billion in deferred revenue in the fiscal fourth quarter, up 6 percent year over year.

In the quarter Cisco announced an expanded cloud partnership with Alphabet’s Google and the sale of its service provider video software business to Permira Funds. “We believe the divestiture was the right move to make, but it will impact near-term results,” Piper Jaffray analysts James Fish and Andrew Nowinski wrote in a Monday note.

With respect to guidance, Cisco said that for its fiscal first quarter it’s expecting to register 70-72 cents per share, excluding certain items, on an implied $12.74-12.99 billion in revenue. Analysts had been expecting guidance of 69 cents per share, excluding certain items, on $12.61 billion in revenue, according to Thomson Reuters.

Cisco stock is up about 14 percent since the beginning of 2018.



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Article source: https://www.cnbc.com/2018/08/15/cisco-earnings-q4-2018.html

Lucro da Cisco cresce 57% no trimestre terminado em julho

A Cisco divulgou hoje (15) os resultados do ano fiscal 2018. A companhia registrou aumento de 57% no lucro líquidos no seu quarto trimestre fiscal, encerrado em julho. O montante chegou a US$ 3,8 bilhões. A receita cresceu 6%, chegando a US$ 12,8 bilhões. O lucro no trimestre foi ampliado por benefícios fiscais com a repatriação de capital, conforme legislação aprovada pelo governo de Donald Trump.

No ano fiscal de 2018 completo, a companhia registrou receitas de U$ 49,3 bilhões, 2,7% a mais que no ano fiscal de 2017. A mesma legislação que impulsionou o lucro no quarto trimestre, teve um efeito negativo no ano, já que a empresa desembolsou US$ 10 bilhões para pagar ajustes ao governo norte-americano. Assim, o lucro líquido foi de US$ 110 milhões (ante US$ 9,6 bilhões um ano antes).

A companhia cresceu no trimestre, e no ano, em todos os mercados onde atua. As Américas continuam a ser o carro-chefe, com faturamento de US$ 7,5 bilhões no quarto trimestre, alta de 5%. Seguida de Europa, Oriente Médio e África (US$ 3 bilhões, alta de 8%) e Ásia Pacífico (US$ 2 bilhões, 6%).

O principal segmento, em receita, continua a ser as plataformas de infraestrutura, que faturaram US$ 7,4 bilhões no trimestre encerrado em julho. Aplicações, focado em software, teve receita de US$ 1,3 bilhão, e Segurança, de US$ 627 milhões.

Article source: http://www.telesintese.com.br/lucro-da-cisco-cresce/

Cisco tem receita acima do esperado com aposta em segurança …

por Reuters


Fachada da Cisco Systems em San Jose, Califórnia
– Elijah Nouvelage / REUTERS

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NOVA YORK – A Cisco Systems reportou uma receita trimestral acima do esperado por Wall Street nesta quarta-feira, impulsionada pelo crescimento nos negócios mais recentes, como segurança cibernética.

A receita de seus negócios de segurança, que oferece proteção de firewall e sistemas de detecção de violações, subiu 12%, para US$ 627 milhões. Oito analistas consultados pela Thomson Reuters esperavam receita de US$ 615,8 milhões.

A Cisco anunciou em agosto que compraria a fornecedora de segurança cibernética Duo Security por R$ 2,35 bilhões, a mais recente aquisição do presidente-executivo Chuck Robbins, enquanto dirige a empresa para áreas de alto crescimento, como segurança cibernética e internet das coisas, para compensar a desaceleração da demanda em seu core business.

A receita em seus negócios de aplicativos de software aumentou 10%, para US$ 1,34 bilhão.

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A receita em sua divisão de plataforma de infraestrutura, que abriga os negócios tradicionais da empresa de fornecimento de aparelhos e roteadores, subiu 7%, chegando a US$ 7,44 bilhões. Oito analistas consultados pela Thomson Reuters esperavam receita de US$ 7,32 bilhões.

O lucro líquido da empresa subiu para US$ 3,80 bilhões (US$ 0,81 por ação) no quarto trimestre encerrado em 28 de julho, contra (US$ 0,48 por ação) um ano antes.

Em uma base ajustada, a empresa ganhou US$ 0,70 dólar. A receita total subiu para US$ 12,84 bilhões.

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Article source: https://oglobo.globo.com/economia/cisco-tem-receita-acima-do-esperado-com-aposta-em-seguranca-digital-22982171