BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Cisco Reports Third Quarter Earnings: Revenue Down 13% Year Over Year
- Total Revenue: $12.7 billion, a 13% decrease year over year.
- Strong Profitability: GAAP gross margin at 65.1%, non-GAAP gross margin at 68.3%.
- Subscription Revenue: $6.9 billion, representing 54% of total revenue.
- Annualized Recurring Revenue (ARR): $29.2 billion, up 22% year over year.
- Splunk Contribution: $413 million in revenue from the acquisition.
Financial Overview
Cisco's third quarter results highlight a challenging yet resilient performance. The company reported a revenue of $12.7 billion, a 13% decrease compared to Q3 FY 2023. Despite this, the company's profitability remained strong with a GAAP gross margin of 65.1% and a non-GAAP gross margin of 68.3%.
Earnings Per Share (EPS)
- GAAP EPS: $0.46, down 41% year over year.
- Non-GAAP EPS: $0.88, down 12% year over year.
The acquisition of Splunk had a negative impact of $0.09 on GAAP EPS and $0.01 on non-GAAP EPS.
Revenue Breakdown by Segment
- Americas: Down 15%
- EMEA: Down 9%
- APJC: Down 12%
Product revenue was down 19%, with notable growth in Security (up 36%) and Observability (up 27%). Networking revenue decreased by 27%.
Strategic Initiatives and Leadership Changes
Cisco's transformation strategy continues to evolve, bolstered by the acquisition of Splunk, which added $413 million to the quarter's revenue. Gary Steele, former CEO of Splunk, has been appointed as President of Go-to-Market, effective immediately. Steele's leadership is expected to drive strategic growth and ensure a smooth integration of Splunk into Cisco's operations.
Guidance for Q4 FY 2024
Cisco anticipates the following results for the fourth quarter of fiscal 2024:
- Revenue: $13.4 billion to $13.6 billion
- GAAP EPS: $0.46 to $0.51
- Non-GAAP EPS: $0.84 to $0.86
For the full fiscal year 2024, Cisco expects:
- Revenue: $53.6 billion to $53.8 billion
- GAAP EPS: $2.46 to $2.51
- Non-GAAP EPS: $3.69 to $3.71
Dividend Declaration
Cisco declared a quarterly dividend of $0.40 per common share, payable on July 24, 2024, to shareholders of record as of July 5, 2024.
Market Reaction
Following the earnings announcement, Cisco's stock price rose by 4.93% in after-market trading, reflecting investor confidence in the company's strategic direction and profitability amidst a dynamic market environment.
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