Cisco Update Q1/2015
The business of the leading provider of data switches and routers was highly positive. Revenues grew by 5.1% and earnings per share by 5.9% (non-GAAP). The company has driven well ahead its business in a lackluster growth environment notably in emerging markets. In July, after 20 years at the helm, John Chambers will step down as the company’s CEO (but become executive chairman) and hand over to company veteran Chuck Robbins. Overall, these changes shouldn’t bring any substantial changes to the business of CSCO, which is more and more a mature market. Yet, it generates a FCF in excess of 7 %.