$Cisco (CSCO.US)$ reported Q2 2024 adjusted EPS of $0.87 beat estimates of $0.84, but Q3 guidance fell below expectations. The internet provider company also said it would launch a restructuring plan to cut 5% of its global workforce.
The company reported quarterly sales of $12.8 billion, beating the analyst estimate of $12.71 billion. The company estimates that it will recognize pre-tax charges to its GAAP financial results of approximately $800 million consisting of severance and other one-time termination benefits and costs.
"We delivered a solid second quarter with strong operating leverage and capital returns," said Chuck Robbins, CEO of Cisco.
"We continue to align our investments to future growth opportunities. Our innovation sits at the center of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organizations," Robbins added.
Cisco expects third-quarter revenue of between $12.1 billion and $12.3 billion, versus the estimate of $13.09 billion and third-quarter earnings of between 84 cents and 86 cents per share, versus estimated earnings of 92 cents per share.
Cisco sees full-year 2024 revenue of between $51.5 billion and $52.5 billion, versus estimated revenue of $54.26 billion and earnings of between $3.68 and $3.74 per share, versus estimated earnings of $3.86 per share.