Cisco Systems‘(CSCO) fiscal 2023 revenue outlook beat expectations, while fiscal 2022 fourth-quarter results beat Wall Street estimates. CSCO shares jumped on the news.
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The computer networking giant reported earnings for the July quarter after the market closed on Wednesday. Cisco shares jumped 5.3 percent to 49.14 in extended trading on the stock market today.
Adjusted earnings for CSCO stock came in at 83 cents per share, down 1% from a year earlier. Revenue was flat at $13.1 billion, including acquisitions.
Analysts had estimated that Cisco would earn 82 cents per share on revenue of $12.73 billion, according to FactSet.
Cisco Stock: 2023 Sales Guidance Views above
For its current fiscal first quarter ending in October, Cisco forecast earnings in the range of 82 cents to 84 cents, versus estimates of 84 cents. Cisco forecast revenue growth of 2% to 4%, compared with forecasts for flat sales growth.
For fiscal 2023, Cisco said it expects sales growth in the range of 4% to 6%, compared with forecasts for 3% sales growth to $52.7 billion.
Heading into Cisco’s earnings report, the company has a relative strength rating of 26 out of a possible 99, according to IBD Stock Check. CSCO shares are down 26% in 2022.
Also, CSCO’s stock has drifted away from its core business of selling network switches and routers. With acquisitions, Cisco seeks to increase revenue from software and services.
But Cisco’s pivot to subscription software revenue has stalled. Software has been around 30% of total revenue for the past six quarters, Raymond James said in a report.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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