Cisco Systems-Cisco (CSCO) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Cisco Systems reported revenue of $13.64 billion for the quarter ended July 2024, a decrease of 10.3% year-over-year, with EPS at$ 0.87 compared to $1.14 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of$ 13.52 billion by 0.90%, and EPS also surpassed the consensus estimate of $0.85 by 2.35% [1] Revenue Performance - Total Remaining Performance Obligations (RPO) stood at$ 41.05 billion, below the average estimate of $42.31 billion from two analysts [3] - Networking product revenue was$ 6.80 billion, slightly above the average estimate of $6.76 billion, but represented a year-over-year decline of 16.3% [4] - Observability product revenue reached$ 248 million, exceeding the estimated $243.65 million [5] - Services revenue was$ 3.78 billion, surpassing the average estimate of $3.73 billion, reflecting a year-over-year increase of 6.5% [6] - Security product revenue was$ 1.79 billion, significantly above the average estimate of $1.64 billion, marking an impressive year-over-year growth of 81.1% [7] - Overall product revenue totaled$ 9.86 billion, exceeding the average estimate of $9.66 billion, but showing a year-over-year decline of 15.4% [8] - Collaboration product revenue matched the estimate at$ 1.02 billion, with a slight year-over-year decrease of 0.4% [9] Gross Margin - Non-GAAP gross margin for services was $2.66 billion, above the average estimate of$ 2.55 billion [10] - Non-GAAP gross margin for products was $6.61 billion, exceeding the average estimate of$ 6.34 billion [11] Stock Performance - Cisco shares have returned -4.3% over the past month, compared to a -3.2% change in the Zacks S&P 500 composite [11] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [11]