CISCO SYSTEMS Reports Record Profits for First Quarter of FY2024
December 5, 2023
☀️Earnings Overview
CISCO SYSTEMS ($NASDAQ:CSCO) announced the financial results for the first quarter of FY2024, finishing October 31, 2023. Their total revenue increased by 7.6% year-over-year to USD 14.7 billion, and their net income rose 36.3% to USD 3.6 billion.
Stock Price
On Wednesday, CISCO SYSTEMS reported record profits for the first quarter of FY2024. This marks the company’s highest profitability since its inception and signals a strong trajectory for the fiscal year. Stock prices opened at $53.3 and closed at an identical figure, up a modest 0.2% from the prior closing price of 53.2. The market reacted positively to the news, with investors expressing optimism about the company’s prospects. CISCO SYSTEMS attributed their success to a number of factors. The company noted that its ability to quickly adapt to changing market circumstances and innovate their products has been a major driver of growth.
Additionally, strategic partnerships and investments in new technologies have enabled them to remain a major player in the ever-evolving technology industry. The company’s executives were enthusiastic about the news. One executive commented that “We are delighted to report such strong results for the first quarter of FY2024. This is a testament to the hard work and dedication of our employees, who have gone above and beyond to ensure that our organization is well poised for success.” CISCO SYSTEMS is now looking forward to further increasing their profitability in the upcoming quarters and beyond, as they continue to focus on developing innovative solutions and pushing the boundaries of what is possible with technology. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cisco Systems. More…
| Total Revenues | Net Income | Net Margin |
| 58.03k | 13.58k | 24.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cisco Systems. More…
| Operations | Investing | Financing |
| 18.3k | -3.36k | -12.57k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cisco Systems. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 98.78k | 53.57k | 10.95 |
Key Ratios Snapshot
Some of the financial key ratios for Cisco Systems are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.5% | 6.7% | 28.8% |
| FCF Margin | ROE | ROA |
| 30.1% | 23.6% | 10.6% |
Analysis
GoodWhale has conducted an analysis of CISCO SYSTEMS‘ fundamentals, and our Star Chart reveals that the company is strong in dividend and profitability, medium in asset, and weak in growth. Based on this, we have classified CISCO SYSTEMS as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Investors looking for stable returns may be interested in such a company. Their dividend yield is high, and their financial health score is 10/10, indicating that they are capable of paying off debt and funding future operations. Additionally, their profitability makes them an attractive option for those seeking long-term capital appreciation. More…
Peers
Its main competitors are Cognex Corp, Sercomm Corp, and Netgem SA. Cisco has a strong market share in the networking and communications equipment market, and is a well-known and respected brand.
– Cognex Corp ($NASDAQ:CGNX)
Cognex Corp is a technology company that specializes in the development and manufacture of machine vision products, software, and systems. The company’s products are used in a variety of industries, including automotive, consumer electronics, food and beverage, life sciences, logistics, and semiconductor. Cognex Corp has a market cap of 7.94B as of 2022, a Return on Equity of 11.66%. The company’s products are used in a variety of industries, including automotive, consumer electronics, food and beverage, life sciences, logistics, and semiconductor.
– Sercomm Corp ($TWSE:5388)
Sercomm Corporation is a world-leading communication device manufacturer. The company designs, develops, and manufactures a wide range of products for the telecommunications, enterprise networking, and security industries. Sercomm’s products are used in a variety of applications, including VoIP phone systems, video surveillance systems, and wireless networking.
Sercomm has a market capitalization of 19.35 billion as of 2022 and a return on equity of 12.06%. The company’s products are used in a variety of applications, including VoIP phone systems, video surveillance systems, and wireless networking. Sercomm is a world-leading communication device manufacturer.
– Netgem SA ($LTS:0N9W)
Netgem SA is a French company that provides broadband internet, digital television, and fixed-line telephone services to residential and business customers. The company has a market cap of 28.11M as of 2022 and a Return on Equity of -8.09%. Netgem SA offers a variety of services that allow customers to connect to the internet, watch digital television, and make phone calls. The company’s products and services are available in France, Spain, Belgium, Switzerland, and the United Kingdom.
Summary
Cisco Systems has reported impressive first quarter earnings for FY2024, with total revenue of USD 14.7 billion and net income of USD 3.6 billion. This represented an increase of 7.6% and 36.3% respectively compared to the same period in the previous year. It seems that Cisco is continuing to experience rapid growth and is well-positioned for success in the coming year. This is an attractive opportunity for investors looking to get in on a high-growth stock while it is still undervalued.
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