Cisco Systems Inc. has announced impressive quarterly results, though a mixed forecast for fiscal 2024 has caused a decline in shares during after-hours trading. Chief Executive Chuck Robbins expressed confidence in the company’s ability to seize future opportunities, noting solid customer demand and market share growth, as well as innovation in areas such as AI, security, and cloud.
Fourth-Quarter Performance Highlights
In the fourth quarter, Cisco reported a net income of $4 billion, or 97 cents per share, on revenue of $15.2 billion – an increase from $13.1 billion in the previous year. After adjusting for stock-based compensation and other costs, Cisco’s earnings per share reached $1.14, up from 83 cents in the same quarter last year. These results surpassed analysts’ expectations, who anticipated adjusted net income of $1.06 per share on revenue of $15.05 billion.
While shares experienced a 2% dip during after-hours trading, closing down 0.7% in regular trading at $52.96, Cisco’s Product and Service businesses demonstrated significant growth. Product revenue reached $11.65 billion, marking a 20% increase from the previous year, while Service revenue rose by 4% to $3.55 billion – surpassing the projected total product revenue of $11.5 billion.
Outlook for the Current Fiscal Year
For the first quarter of the current fiscal year, Cisco executives have provided guidance for adjusted earnings of $1.02 to $1.04 per share and revenue ranging from $14.5 billion to $14.7 billion. Analysts’ predictions aligned closely with expected adjusted earnings of $1 per share and revenue of $14.64 billion.
However, guidance for full-year fiscal 2024 has evoked mixed response as Cisco foresees adjusted earnings of $4.01 to $4.08 per share on revenue of $57 billion to $58.2 billion. Although analysts polled by FactSet anticipate earnings of $4.05 per share on revenue of $58.4 billion, caution seems to overshadow the forecast.
Throughout the year, Cisco’s stock has experienced an 11% increase, while the broader S&P 500 index has gained 15%. As the market continues to evolve, Cisco remains focused on delivering innovative solutions and capitalizing on emerging opportunities.
