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Cisco Slightly Beats Expectations With 8% Revenue Growth

Cisco shares fell slightly in extended trading after the networking hardware company reported earnings that beat analysts’ expectations.

Cisco’s earnings for the fourth fiscal quarter ended July 31 came in at 84 cents on an adjusted basis, beating expectations of 82 cents, while revenue grew 8% to $13.13 billion, compared to expectations of only $13.03 billion. Noting that the revenues during the previous quarter witnessed a growth of 7% year-on-year.

As for the gross profit margin, it decreased from 63.9% during the previous quarter to 63.6% during the fourth fiscal quarter. It is noteworthy that the company raised the prices of some products on August 7 due to the nature of supply chains at the present time.

With the guidance in mind, Cisco expects adjusted fiscal first-quarter earnings to be between 79-81 cents per share with revenue growth of 7.5-9.5%, while analysts are expecting adjusted earnings of 81 cents and revenue of just $12.84 billion, a growth of 7.7%.

As for the adjusted gross margin, the company expects it to shrink to about 63.8% during the first fiscal quarter from 65.5% during the fourth fiscal quarter due to additional costs related to supply chain bottlenecks.

Cisco published its guidance for fiscal 2022 earlier than usual, calling for adjusted earnings of $3.38-3.45 per share with revenue growth of 5-7%, while analysts see earnings of $3.41 per share on revenue of $51.91 billion, a growth of 4%.

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