This Is Why Cisco's Profits Are Holding Up
"Secondary collateral damage" is how Cisco Systems (NASDAQ: CSCO) CEO Chuck Robbins described the impact of the novel coronavirus pandemic on the networking hardware provider. With many of Cisco's customers facing the most uncertain economic environment in recent memory, the company is experiencing a pause in orders. In the fiscal third quarter, Cisco's total revenue slumped 8%, and revenue from the core infrastructure platforms segment tumbled 15%.
While sales are in decline, Cisco managed to grow its per-share earnings in the third quarter, at least on an adjusted basis. Adjusted EPS came in at $0.79, up 1% from the prior-year period, and adjusted gross margin expanded by 2 percentage points to 66.6%. There were a few factors driving those increases.
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Source Fool.com
