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Cisco stock jumps on earnings beat

Cisco shares higher after a fiscal Q1 earnings beat

Video Transcript

SEANA SMITH: We got some breaking news here after hours. Cisco is out with its earnings report. Jared Blikre, what are the number?

JARED BLIKRE: Stock's up about 7% in after hours trading, and it's a beat on both their top and bottom lines. First quarter revenue came in at $0.93 billion and that is higher than the street estimate of $11.85 billion, but it is a drop of about 9.3% year over year. And first quarter adjusted EPS coming in at $0.76 per share versus $0.84 one year ago, and higher than the estimate of $0.71. Now their margins did beat, although they did shrink a little bit from a year ago. That's 65.8% for gross margins. The estimate was for 64.5%, so gain of about 130 basis points there.

And then just breaking down the revenue by platform. Infrastructure platforms revenue beat, or actually came in line at $6.34 billion applications. Revenue $1.38 billion. That's a small beat. And then service revenue, $3.34 billion, beating estimates of $3.29 billion. Finally, product revenue came in at $8.59 billion. The estimate was $8.53 billion. And the CEO Chuck Robbins issued a quote in the report saying Cisco is off to a solid start in fiscal 2021, and we are encouraged by the signs of improvement in our business as we continue to navigate the pandemic and other macro uncertainties.

And also, they just announced a separate report, that they are replacing their CFO in about one month, on December 18. R. Scott Heron is going to be executive VP and also their chief financial officer. So stock now up about 8 and 1/2% in aftermarket trading after they beat on both their top and bottom lines and replaced or announced the replacement of their CFO.