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Cisco Tops Revenue and Profit Estimates, Forecasts Sales Growth

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Cisco Tops Revenue and Profit Estimates, Forecasts Sales growth

(CTN News) – Cisco’s fiscal fourth-quarter results topped analysts’ expectations on Wednesday and provided a better-than-expected forecast for 2015. Stocks rose 2.5% in extended trading.

Here’s how the company did:

Earnings: 83 cents per share, adjusted, versus 82 cents per share expected by analysts, according to Refinitiv.
Revenue: $13.10 billion, compared with analysts’ expectations of $12.79 billion, according to Refinitiv.

According to a statement, revenue declined slightly in the quarter.

As the adjusted gross margin narrowed to 63.3% from 65.3% in the previous quarter, net income decreased by 6% to $2.82 billion. It was predicted to be 64.7%.

Cisco expects adjusted earnings per share of $3.49 to $3.56 and revenue growth of 4% to 6%.

Refinitiv analysts predicted $3.53 EPS and $52.79 billion revenue, or 2.3% growth. Revenue increased 3.4% in the fiscal year 2022.

As the technology world rapidly shifts to cloud and subscription software and away from buying physical boxes, Cisco is still struggling to grow.

Stock prices have fallen 24%, while Nasdaq has fallen 17%.

As of June 30, Secure, Agile Networks, which includes data-center networking switches, accounted for 46% of total revenue at $6.09 billion, down 1% from a year earlier but above StreetAccount’s consensus estimate of $5.86 billion.

In the second-largest unit, Internet for the Future, which includes routed optical network hardware acquired through Acacia Communications’ acquisition in 2021, revenue was $1.26 billion, down 10% from StreetAccount’s forecast.

Collaboration segment revenue of $1.16 billion was up 2% from $1.10 billion StreetAccount consensus.

Cisco announced a new video desk phone and background noise removal software for its Webex video-calling service during the quarter.

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