Cisco Tops Estimates But Gives Conservative Annual Forecast
Cisco Tops Estimates
Cisco Systems Inc. reported fiscal second-quarter revenue that beat analysts’ estimates, boosted by strong demand for its networking gear and software.
Revenue rose to $13.6 billion in the period ended Jan. 28, from $12.8 billion a year earlier.
Analysts had expected revenue of $13.5 billion, according to Refinitiv data.
Conservative Annual Forecast
However, the company gave a conservative annual forecast, citing ongoing supply chain challenges and macroeconomic uncertainty.
Cisco expects fiscal 2023 revenue to grow 4% to 6%, below analysts’ estimates of 6.2%. It also forecast adjusted earnings per share of $3.73 to $3.86, below estimates of $3.87.
“While we continue to see strong demand, we are taking a prudent approach to our outlook given the current macroeconomic environment,” CEO Chuck Robbins said in a statement.
Product Categories
The company’s infrastructure platforms business, which includes networking gear, grew 9% to $7.9 billion.
Its security and collaboration business grew 5% to $3.8 billion, and its applications business increased 12% to $1.9 billion.
Product Highlights
- Revenue from switches grew 11% to $4.9 billion.
- Revenue from routers rose 7% to $2.3 billion.
- Revenue from security products grew 6% to $2.8 billion.
- Revenue from collaboration products grew 4% to $1 billion.
Geographic Performance
The Americas region generated $6.1 billion in revenue, up 6% year-over-year.
EMEA generated $4.4 billion in revenue, up 4%.
APJC generated $3.1 billion in revenue, up 11%.
Outlook
Cisco said it expects the supply chain challenges to continue in the second half of fiscal 2023.
The company also said it is facing macroeconomic uncertainty, including the war in Ukraine and rising inflation.
“We remain focused on executing our strategy and delivering for our customers,” Robbins said. “We are confident that we can continue to grow our business and create value for our shareholders.
