August 16th, 2018 by Adam Armstrong
Cisco Reports 4Q18 & FY18 Earnings
Cisco reported both its fourth quarter and full year earnings for its fiscal 2018. The company’s numbers were good and able to beat expectations. Cisco’s stock is roughly where it was a quarter ago, up slightly this morning, and up a great deal in a year.
Looking at the numbers for the quarter, Cisco is reporting a revenue of $12.8 billion, up from last quarter’s $12.5 billion and a 6% increase year over year. The company is reporting a GAAP net income of $3.8 billion (or EPS of $0.81) and a non-GAAP net income of $3.3 billion (or EPS of $0.70). Total gross margin was 61.7% GAAP and 62.9% non-GAAP. Cash flow was $4.1 billion. The company’s GAAP results include an $863 million benefit related to the Tax Cuts and Jobs Act.
For the year, Cisco is reporting $49.3 billion in revenue up 3% from the year before. The company is reporting a net income of $100 million GAAP and $12.7 Billion non-GAAP. The company also states that they have generated approximately $13.7 billion in cash flow and operating activities. Again, Cisco’s GAAP results include a $10.4 billion charge related to the enactment of the Tax Cuts and Jobs Act comprised of $8.1 billion for the U.S. transition tax, $1.2 billion for foreign withholding tax and $1.1 billion for the re-measurement of net deferred tax assets.
The company bought back $6 billion worth of shares (138 million shares) and declared and paid out a dividend of $0.33 per common share, for a total of $1.5 billion. Cisco continued on its path of buying up several smaller companies with the acquisition of Accompany, July Systems, Inc., and the intent to acquire Duo Security.
Looking at the next quarter the company is expecting a 5-7% growing in revenue Y/Y with gross margins of 63-64% non-GAAP, and a non-GAAP earnings per share between $0.70-$0.72.