Cisco is Earning with Fears Ahead

Cisco on Wednesday, has announced its report for its first quarter ended Oct 2018, beating analyst expectations.

Net Income has been raised to $3.55 billion or 77 cents per share from that of $2.39 billion or 48 cents per share a year ago. Cisco for its first quarter generated total revenue of $13.07 billion beating the expectation of $12.87 billion, also higher than $12.14 billion total revenue for the same quarter last year.

Growth in its conventional switches and routers business in all geographies along with initiation of software-based networking product line, with a Catalyst 9000 switching platform’s subscription model in May 2017, has buoyed Cisco with elevated results.

Rising memory chip prices, tariffs, the transforming macro economy and the cloud are the four fearing factors Cisco has been facing now.

For the companies, having large internal data centers and networks, sources have been vastly available in the market in shape of Azure of Microsoft, AWS of Amazon and lot more. And their decision of choosing to move their data to a public cloud hosting companies will be keep on making hindrance to the sale growth of Cisco’s networking gears.

Rising tariffs has been affecting the technology companies so do Cisco. But to overcome the issue any company sooner or later has to revise its price structure. Cisco is also planning to cascade down the tariffs effects by including it to the product prices.

Macro economic situation arise after the trade war between America and China has been creating hard to survive situation in current but market scenarios. But Cisco is still confident to retain the growth rate though with lesser pace.

Cisco is planning to set off the cost factor resulted due to high chip prices as it has been expecting the lower chip prices in coming months.

Though Cisco’s revenue growth is declining for the last two quarters but still it has been earning with single digit growth rate of 8 percent for the last quarter.

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Maria Wiggins

Written by Maria Wiggins

Maria Wiggins:- News Stories
I am Maria Wiggins and I have over 11 years experience in the Technology industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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