Cisco Systems(CSCO) ZACKS·2024-08-15 13:11Core Viewpoint - Cisco Systems reported a decline in both earnings and revenues for the fourth quarter of fiscal 2024, with a notable drop in product revenues, while security revenues showed significant growth [1][2]. Financial Performance - Non-GAAP earnings for Q4 fiscal 2024 were 87 cents per share, exceeding the Zacks Consensus Estimate by 2.35%, but down 23.7% year over year [1]. - Total revenues decreased 10.3% year over year to 9.86 billion [1]. - Networking revenues dropped 28% year over year to 1.79 billion [1]. - Service revenues increased 6.5% year over year to 8.07 billion, missing the consensus mark by 0.7% [2]. - EMEA revenues declined 11% year over year to 2.06 billion, missing the consensus mark by 1.79% [2]. Margins and Expenses - Non-GAAP gross margin expanded by 200 basis points year over year to 67.9% [2]. - Non-GAAP operating margin contracted 280 basis points year over year to 32.5% [3]. - Non-GAAP operating expenses were 17.9 billion, down from 30.96 billion from 3.7 billion, lower than the previous quarter's 41 billion, with 51% expected to be recognized as revenue in the next 12 months [3]. Guidance - For Q1 fiscal 2025, revenues are projected between 13.85 billion, indicating a 7.5% year-over-year decline [4]. - Non-GAAP earnings are anticipated to be between 86 cents and 88 cents per share, suggesting a 24.3% year-over-year decline [4]. - For fiscal 2025, revenues are expected to range between 56.2 billion, with non-GAAP earnings anticipated between 3.58 per share [4]. Stock Performance - Cisco currently holds a Zacks Rank 2 (Buy) [5]. - CSCO shares have declined 10.1% year to date, contrasting with the Zacks Computer & Technology sector's growth of 18% [5].