Cisco Sinks, NetApp Soars After Hours On Earnings

Cisco Systems, Inc. CSCO fell more than 4 percent despite a first quarter earnings beat on both the top and bottom lines.

• Cisco Systems reports Q2 EPS $0.61, beats by $0.02
• Revenues came in at $12.4B, beating by $70 million
• Cisco Systems is expecting Q2 EPS in the $0.55-0.57 range, estimates sales will be down 2-4% YoY in Q2
• The company paid a cash dividend of $0.26 per share, totaling $1.3 billion

"We had a good quarter despite a challenging global business environment and we performed well in our priority areas," said CEO Chuck Robbins. "We are leading our customers in their digital transition by providing them with highly secure, automated, and intelligent solutions in the ways they want to consume them. Our innovation pipeline is robust and we are well positioned for the future."

Industry competitor NetApp Inc. NTAP reported its Q2 earnings and shares soared 10 percent higher.

• NetApp reports Q2 EPS $0.60, beating by $0.06
• Sales came in at $1.34B, missing by $20 million
• The company sees Q3 EPS in the $0.72-0.77 range vs a $0.65 estimate, with sales expected in the $1.325B-1.475 billion range
• $169 million was returned to shareholders in share repurchases and cash dividends

“Our second quarter results are evidence of our ability to maintain a high level of execution while streamlining the business and pivoting to the growth areas of the market,” said CEO George Kurian. "Our market-leading innovations in flash, next-generation data centers and hybrid cloud, coupled with a sharp focus on operational discipline, position NetApp to lead in the digital era."