February 13th, 2019 by Adam Armstrong
Cisco Announces 2Q19 Earnings
Cisco reported its second quarter earnings for its fiscal 2019, which ended on January 26, 2019. Overall the numbers are looking pretty good, especially compared to this time last year. The stock had a bit of a mixed day as it was downgraded from Morgan Stanley; it did however spike up in after hours trading.
Looking at the numbers, Cisco is reporting revenue of $12.4 billion, up 7% from this time last year. The company saw a GAAP net income of $2.8 billion or a gain of $0.63 earnings per share this is a massive improvement from this time last year when the company reported an $8.8 billion net loss. For non-GAAP the company saw a net income of $3.3 billion or $0.73 diluted earnings per share. Cisco reported a total gross margin as 62.5% GAAP and 64.1% non-GAAP. Operating expenses for the quarter were $4.6 billion GAAP and $4.0 billion non-GAAP.
The company declared a quarterly dividend of $0.35 per common share, a 2-cent increase or up 6% over the previous quarter's dividend, to be paid on April 24, 2019 to all shareholders of record as of the close of business on April 5, 2019. Cisco continued to acquire more companies but at a slightly slower pace this quarter acquiring the semiconductor company Luxtera Inc. and announcing its intent to acquire Singularity Networks.
For the next quarter Cisco is expecting revenue to see a 4-6% growth YoY, non-GAAP gross margin between 64-65%, and non-GAAP EPS between $0.76-$0.78.