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Cisco beats analysts' expectations and finally sees its way out an 8-quarter revenue decline streak

Becky Peterson
Chuck Robbins cisco

Mike Blake/Reuters

Cisco's stock shot up 4% in after-hours trading Wednesday after the company announced the end of its multi-quarter decline. The stock hung around $35.40 in after hours trading, after closing at $34.11. 

The company posted a steady $12.136 billion in revenue for the first quarter of 2018, compared to the quarter before when Cisco saw $12.133 billion come in. While revenue is still down 2% from the year before, investors were assuaged by the promise of 1% to 3% year-over-year growth in the upcoming second quarter. If Cisco succeeds, the second quarter will finally break the company's 8-quarter decline streak.

Infrastructure saw $6.97 billion in revenues, down 4% from the same quarter last year. Applications — led primarily by products resulting from Cisco’s $3.7 billion acquisition of AppDynamics — were up 6% to $1.203 billion. Security products were up 8% to $585 million. Other products were down 16% to $296 million. Services — a particular focus moving forward for Cisco — were up 1% to $3.082 billion. 

Here are Cisco's results: 

  • Revenues (GAAP) were $12.136 billion, compared to analyst estimates of $12.11 billion. 
  • Earnings per share (adjusted) were $0.61, compared to analyst estimates of $0.60 per share.
  • Net income was $2.4 billion, up 3% from the same quarter last year.
  • Projected revenues (GAAP) for the second quarter of 2018 are 1% to 3% growth from last year's $11.6 billion. This is compared to analyst estimates of $11.7 billion.
  • Projected earnings per share (adjusted) for the second quarter of 2018 are $0.58 to $0.60, compared to analyst estimates of $0.58. 

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