- Cisco reported quarterly results that exceeded estimates, but its guidance was subpar.
- The company attributed the decline in product orders to clients being preoccupied with implementing Cisco offerings from previous quarters.
Chuck Robbins, CEO & Chairman of Cisco, speaking on Squawk Box at the WEF in Davos, Switzerland on Jan. 18th, 2023.
Adam Galica | CNBC
Cisco’s shares plummeted by 13% in after-hours trading on Wednesday following the networking hardware maker’s gloomy forecast for the current quarter and full fiscal year.
Here’s how the company fared compared to the analysts’ consensus:
- Earnings: $1.11 per share, adjusted, vs. $1.03 per share expected
- Revenue: $14.67 billion vs. $14.61 billion expected
According to a statement, revenue grew by 7.6% in the fiscal first quarter ending on Oct. 28. Net income also rose from $2.67 billion to $3.64 billion.
Cisco explained that product orders slowed due to clients focusing on implementing products from previous quarters, resulting in a projected backlog of shipped products.
As for guidance, Cisco forecasted 82-84 cents in adjusted earnings per share and a revenue decline of 6.6% for the fiscal second quarter, falling short of analysts’ expectations.
Cisco lowered its full-year revenue forecast but increased its earnings outlook. The company now anticipates adjusted earnings per share of $3.87-$3.93 on $53.8-$55.0 billion in revenue, down from previous estimates. Analysts expected $4.05 in earnings per share and $57.76 billion in revenue.
Executives are set to discuss the results during a conference call starting at 4:30 p.m. ET.
Despite the after-hours decline, Cisco’s shares are up 12% this year, trailing the S&P 500 index, which has seen a 17% increase during the same period.
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