Cisco (CSCO) results for the first quarter of 2021

Cisco shares rose 9% in extended trading on Thursday after the company announced first-quarter tax results and a bullish forecast that exceeded analysts’ expectations.

Here’s how the company did it:

• Earnings: 76 cents per share, adjusted, compared to 70 cents per share as expected by analysts, according to Refinitiv.
• Returned: $ 11.93 billion, compared to $ 11.85 billion as expected by analysts, according to Refinitiv.

As for the forecast, Cisco said it saw 74 cents to 76 cents on an adjusted per share basis and a 2% drop in revenue for stable revenue in the fiscal second quarter. Analysts polled by Refinitiv expected 73 cents in adjusted earnings per share and $ 11.63 billion in revenue, implying a 3% drop in revenue for the period.

Overall, Cisco’s revenue fell 9% on an annualized basis in the quarter, according to a statement, in line with the 9% drop in the previous quarter. Revenue has now fallen for four consecutive quarters. The coronavirus pandemic and recession continued to challenge Cisco, as a large portion of its revenue still comes from the sale of equipment for data centers and corporate and government offices, while spending on cloud services has increased. increased as people work from home.

Cisco’s Infrastructure Platforms segment, which includes data center network switches, generated $ 6.34 billion in revenue, down 16% year-on-year and below consensus of $ 6.45 billion among analysts polled by FactSet. This is the largest part of Cisco’s business in terms of revenue, and it is the one most affected by the virus.

The Apps business, which includes Webex video calling service and AppDynamics monitoring software, contributed $ 1.38 billion in revenue, down 8% and just below the FactSet consensus of 1, $ 40 billion.

Cisco said Scott Herren, chief financial officer of Autodesk for the past six years, will replace Kelly Kramer, chief financial officer of Cisco, whose retirement was announced in August.

During the quarter, Cisco announced its goal of increasing black representation in senior management by 75% by 2023. During the same quarter, Cisco also acquired BabbleLabs, a company offering software that can improve quality. calls and announced improvements to the Webex software.

As of Thursday’s close, Cisco shares had fallen around 20% so far this year, while the S&P 500 had risen 9% over the same period.

Executives will discuss the results with analysts on a conference call that will begin at 4:30 p.m. Eastern time.

This is the latest news. Please come back for updates.

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