Cisco Systems Inc. (CSCO - Free Report) released its first quarter fiscal 2017 financial results after the bell, posting earnings of 55 cents per share (accounting for non-stock based compensation and BNRI) and revenues of $12.4 billion. CSCO is a #2 (Buy) on the Zacks Rank, and is down 4.24% to $30.23 per share in after-hours trading.

Beat earnings estimates. The company reported earnings of 55 cents per share, topping the Zacks Consensus Estimate of 54 cents per share. This number excludes 9 cents from non-recurring items.

Beat revenue estimates. The company saw revenue figures of $12.4 billion, also beating our consensus estimate of $12.342 billion and growing 1% year-over-year. Product revenue was down 1%, and service revenue was up 7%. 

On a GAAP basis, total gross margin and product gross margin were 63.8% and 63.4%, respectively, thanks to productivity improvements and the divestiture of the SP Video CPE Business, which was partially offset by pricing and to a lesser extent product mix. Non-GAAP total gross margin and product gross margin were 65.2% and 64.8%, respectively.

Looking ahead to Q2, revenue is forecasted to decline (2)% to (4)% year-over-year, while GAAP EPS is expected to fall in the range of 42 cents to 47 cents, and non-GAAP EPS in the range of 55 cents to 57 cents.

"We had a good quarter despite a challenging global business environment and we performed well in our priority areas," said Chuck Robbins, CEO, Cisco. "We are leading our customers in their digital transition by providing them with highly secure, automated, and intelligent solutions in the ways they want to consume them. Our innovation pipeline is robust and we are well positioned for the future."

Here’s a graph that looks at Cisco’s price, consensus, and EPS surprise:

CISCO SYSTEMS Price, Consensus and EPS Surprise

CISCO SYSTEMS Price, Consensus and EPS Surprise | CISCO SYSTEMS Quote

Cisco Systems is the worldwide leader in networking for the Internet. Cisco's Internet Protocol-based networking solutions are the foundation of the Internet and most corporate, education, and government networks around the world. Cisco provides the broadest line of solutions for transporting data, voice and video within buildings, across campuses, or around the world.