Cisco share price increased by 9% on Thursday in extended trading after the company`s fiscal first-quarter earnings were revealed which beat all the estimates. The company earnings for the reported quarter was $0.76 per share compared to analyst’s estimate of $0.70 per share. The company earned a revenue of $11.93 billion beating the $11.85 estimate by Refinitiv.
Cisco’s revenue declined 9% on annual basis in the quarter in a line with the 9% in the previous quarter. The Coronavirus pandemic is affecting the company as other business affected and its cloud services sales have been increased as more people have to work from home during the current scenario.
The company saw an increase of 5% in public sector orders year over year in the quarter while orders declined in enterprise, commercial and service provider segments. Cisco CEO Chuck Robbins said that he is hopeful about the future and he thinks that the company had customers who were super focused on getting their employees working from home properly and getting their security set up.
Cisco’s Infrastructure Platforms segment delivered $6.34 billion in revenue. It’s the largest part of Cisco’s business by revenue, and it’s the one that’s most impacted by the virus. The Cisco video-calling service Webex and the AppDynamics monitoring software earned $1.38 billion in revenue, slightly less than the estimates of $1.40 billion.
The Company also announced that the Scott Herren, the current chief financial officer of Autodesk will replace Kelly Kramer as a chief financial officerwhose retirement was announced in August.
Cisco is working to increase diversity in their workers by increasing Black representation among executive ranks by 75% by 2023.Cisco shares declined 20% so far this year till Thursday while the S&P 500 increased by 9% over the same period.