Cisco (CSCO) earnings Q4 2022
Cisco released its fourth-quarter financial results on Wednesday, topping analysts’ expectations and providing a better-than-expected forecast for next year. Shares were up 2.5% in extended trading.
Here’s how the company did it:
- Income: 83 cents/share, adjusted, compared with 82 cents/share as expected by analysts, according to Refinitiv.
- Turnover: According to Refinitiv, $13.10 billion, compared with $12.79 billion as predicted by analysts.
Revenue fell slightly for the quarter ended July 30, according to a statement. Net income fell 6% to $2.82 billion as the company’s adjusted gross margin narrowed to 63.3% from 65.3% in the previous quarter. Analysts had predicted 64.7%.
For fiscal year 2023, Cisco calls for adjusted earnings per share of $3.49 to $3.56 and revenue growth of 4% to 6%. Analysts polled by Refinitiv had expected adjusted earnings of $3.53 per share, on revenue of $52.79 billion, or 2.3% growth. In fiscal year 2022, revenue grew 3.4%.
While Cisco’s numbers often top estimates, the company is still struggling to grow as the tech world shifts rapidly to cloud and subscription software and away from buying boxes. physics. The company’s share price is down 24% this year, while the Nasdaq is down 17%.
The company’s flagship business, Secure Network, Agile, which includes data center network switches, delivered 46% of total revenue at $6.09 billion, down 1% from a year earlier but above the $5.86 billion consensus from analysts polled by StreetAccount.
The second-largest unit, Internet for the Future, contains routing optical networking hardware that the company acquired through its 2021 acquisition of Acacia Communications, which posted revenue of $1.26 billion, down 10 percent and below the mark. consensus of $1.36 billion from StreetAccount.
The Webex Collaborations segment contributed $1.16 billion in revenue, up 2% and above StreetAccount’s $1.10 billion consensus. During the quarter, Cisco announced a new video desk phone and wider availability of background noise cancellation software for its Webex video calling service.
Executives will discuss the results with analysts in a conference call that begins at 4:30 p.m. ET.