Cisco Systems Posts Second-Quarter Earnings Report

Cisco's improving product orders and strong recurring revenue growth has markets encouraged, even though switch and router sales slumped last quarter

Author:: Edward Hardy
Publish date:: Feb 16, 2017 7:22 AM EST

In a more subdued environment for U.S. equities, the very mixed set of sales, earnings, guidance and product order figures just shared by Cisco Systems (CSCO) - Get Report might trigger some selling. But with indices surging to new highs almost daily and Cisco -- despite its recent rally -- still trading at moderate multiples, the networking giant apparently did enough to get a thumbs-up from investors.

Cisco reported fiscal second quarter revenue of $11.58 billion (down 2% annually) and adjusted EPS of $0.57, slightly topping consensus analyst estimates of $11.55 billion and $0.56. April quarter guidance is for revenue to be flat to down 2%, and for EPS to be in a range of $0.57 to $0.59; that's in line with consensus estimates for a 1% sales drop and EPS of $0.58.