Cisco Systems, Inc. (NASDAQ:CSCO) Surpasses Earnings and Revenue Estimates

• Earnings per share (EPS) of $0.91, surpassing the estimated $0.872.
• Revenue of approximately $13.84 billion, exceeding the estimated $13.78 billion.
• Despite a year-over-year drop in EPS, Cisco raises its full-year forecast, indicating confidence in future performance.

Cisco Systems, Inc. (NASDAQ:CSCO) is a leading technology company known for its networking hardware, software, and telecommunications equipment. The company competes with other tech giants like Juniper Networks and Arista Networks. On November 13, 2024, Cisco reported earnings per share (EPS) of $0.91, surpassing the estimated $0.872, and revenue of approximately $13.84 billion, exceeding the estimated $13.78 billion.

Despite the positive earnings surprise, Cisco's EPS of $0.91 marks a decline from the $1.11 reported in the same quarter last year, as highlighted by Zacks Investment Research. This decrease in EPS indicates a year-over-year drop in profitability, which may concern investors. However, the company has raised its full-year forecast, suggesting confidence in its future performance.

Cisco's financial metrics provide further insights into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 24.66, indicating how much investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 4.37, reflecting the market's valuation of its revenue. These ratios help investors assess whether the stock is overvalued or undervalued compared to its earnings and sales.

The enterprise value to sales ratio of around 4.80 and the enterprise value to operating cash flow ratio of approximately 20.89 suggest how the market values Cisco in relation to its sales and cash flow. These metrics are crucial for understanding the company's financial health and operational efficiency. Additionally, Cisco's earnings yield of about 4.06% provides insight into the return on investment for shareholders.

Cisco's debt-to-equity ratio of approximately 0.71 indicates a moderate level of debt relative to shareholders' equity, which is a positive sign for financial stability. However, the current ratio of around 0.88 suggests that the company may face challenges in covering short-term liabilities with short-term assets. This could be a point of concern for investors assessing Cisco's liquidity position.