CSCO – First quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind

Cisco Systems Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 7.4%.

Looking ahead, revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Communications industry in the US.

The company’s shares are up 2.0% from a week ago.

Balance Sheet Analysis

Just as investors must consider earnings, it is also important to take into account the strength of a company’s balance sheet. We’ve done some analysis and you can see Simply Wall street’s take on Cisco Systems’ balance sheet.

Cisco Systems First quarter 2023 results:

• EPS: US$0.65 (down from US$0.71 in 1Q 2022).
• Revenue: US$13.6b (up 5.7% from 1Q 2022).
• Net income: US$2.67b (down 10% from 1Q 2022).
• Profit margin: 20% (down from 23% in 1Q 2022). The decrease in margin was driven by higher expenses.

Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 7.4%.

Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Communications industry in the US.

Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 1% per year.