Cisco Announces Its Fourth Consecutive Quarterly Revenue Decline, Shares Plummet by 6 Percent

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Source: Pixabay | Photographer: SanderSmit

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The computer networking equipment maker’s revenue decreased by 9% on a year-on-year basis, yet again disappointing investors worldwide. Earnings per share, however, rose by 22% after Cisco managed to reduce its operating expenses by 9%.

Let’s take a closer look at how the company performed during Q4:

 

Earnings: 80 cents versus expectations for 74 cents

Revenue: $12.15 billion versus expectations for $12.08 billion

Revenue from applications: $1.36 billion (down 9% y/y) versus expectations for $1.45 billion

Infrastructure Platforms unit revenue (switches and routers for data centers): $6.63 billion (down 16% y/y) versus expectations for $6.48 billion

 

Recently, Cisco has been struggling to keep ahead of its competition as its business has historically been centered around expensive hardware. In particular, demand for the company’s products has been largely diminished due to public cloud offerings from the likes of Amazon, Microsoft and Google.

 

“While our results reflect the ongoing challenges in the current environment, we executed well. As you would expect, the pandemic has had the most impact on our enterprise and commercial orders, driven by an overall slowdown in spending. We are seeing customers continue to delay their purchasing decisions in certain areas while increasing spend in others until they have greater visibility and clarity on the timing and shape of the global economic recovery.”

Chuck Robbins, CEO of Cisco Inc.

 

Robbins also told analysts during a conference call on Wednesday that the company’s CFO, Kelly Kramer, will be retiring. In the quarter, Cisco also announced its intent to acquire network monitoring company ThousandEyes for close to $1 billion. The company forecasts for its Q1 2021 earnings to range between 69 to 71 cents per share, while revenue is expected to decline by an additional 7% to 9%.


Upcoming reports

See the full list of upcoming earnings reports for 17 – 21 August in the tables below.

Monday, August 17 2020

Country of originCompany nameFiscal period
ChinaJD.com IncSecond quarter of 2020
ChinaBaidu IncSecond quarter of 2020
United KingdomMurray International Trust PLCHalf year 2020
United KingdomCapita PLCHalf year 2020

Tuesday, August 18 2020

Country of originCompany nameFiscal period
USAAgilent Technologies IncThird quarter of 2020
USAKohls CorpSecond quarter of 2020
USAHome Depot IncSecond quarter of 2020
USAWalmart IncSecond quarter of 2021
United KingdomJohn Wood Group PLCHalf year 2020
United KingdomPersimmon PLCHalf year 2020
United KingdomKAZ Minerals PLCHalf year 2020
AustraliaBHP Group PLCFull year 2020

Wednesday, August 19 2020

Country of originCompany nameFiscal period
USATJX Companies IncSecond quarter of 2021
USAProgressive CorpEarnings report for July 2020
USAAnalog Devices IncThird quarter of 2020
USATarget CorpSecond quarter of 2020
USALowe's Companies IncSecond quarter of 2020

Thursday, August 20 2020

Country of originCompany nameFiscal period
USAGap IncSecond quarter of 2020
USARoss Stores IncSecond quarter of 2020
USAVMware IncSecond quarter of 2021
ChinaAlibaba Group Holding LtdFirst quarter of 2021
NorwayOtello Corporation ASASecond quarter of 2020
IrelandCRH PLCHalf year 2020
Great BritainPremier Oil PLCHalf year 2020
Great BritainAntofagasta PLCHalf year 2020
Kingdom of the NetherlandsKoninklijke Boskalis Westminster NVHalf year 2020
USANVIDIA CorpSecond quarter of 2021
ChileSociedad Quimica y Minera de Chile SASecond quarter of 2020

Friday, August 21 2020

Country of originCompany nameFiscal period
USADeere & Co
Third quarter of 2020

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