Cisco Systems Inc CSCO reported fiscal first-quarter financial results after the close on Wednesday. Here are the key metrics from the quarter and a look at what's sending shares lower after hours.
Cisco Q1 Earnings: Cisco said first-quarter revenue increased 8% year-over-year to $14.67 billion, which beat the consensus estimate of $14.62 billion, according to Benzinga Pro. The company reported quarterly earnings of $1.11 per share, up 29% year-over-year and ahead of analyst estimates of $1.03 per share.
Total software revenue and software subscription revenues were up 13% year-over-year. Total annualized recurring revenue came in at $24.5 billion, up 5% year-over-year. Remaining performance obligations totaled $34.8 billion, up 12% year-over-year.
Cisco noted that it saw a slowdown of new product orders in the first quarter. The company believes the slowdown was due to customers being focused on installing and implementing products following exceptionally strong product delivery over the past three quarters.
"After customers implement large amounts of recently shipped product, we expect to see product order growth rates accelerate in the second half of the year," said Scott Herren, CFO of Cisco.
Cisco's Outlook: Cisco issued second-quarter guidance below estimates and cut its full-year guidance, which appears to be the reason shares are diving after hours.
Cisco expects second-quarter revenue to be between $12.6 billion and $12.8 billion versus estimates of $14.19 billion. Cisco sees second-quarter adjusted earnings in a range of 82 cents to 84 cents per share versus estimates of 99 cents per share.
Cisco cut full-year 2024 revenue expectations from $57 billion to $58.2 billion to a new range of $53.8 billion to $55 billion. The company also cut full-year earnings from a range of $4.01 to $4.08 per share to a new range of $3.87 to $3.93 per share.
Management will hold a conference call to discuss these results at 4:30 p.m. ET.
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CSCO Price Action: Cisco shares were down 9.31% after hours at $48.32 at the time of publication, according to Benzinga Pro.
Photo: DennisM2 from Flickr.
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