Cisco shares were up about 5 percent in Wednesday’s extended trading after the company reported fiscal first-quarter earnings results that surpassed analysts’ expectations. The technology company also increased its guidance for fiscal 2023. Cisco reported earnings per share of 86 cents in the period, beating analysts’ estimate of 84 cents per share, according to Refinitiv. Revenue for the fiscal first quarter came in at $13.6 billion, surpassing analysts’ estimate of $13.3 billion, according to Refinitiv. Cisco’s revenue was up 6 percent year over year. Net income, on the other hand, dropped by 10 percent to $2.7 billion. However, Cisco now expects growth in sales for the fiscal year of 2023 to increase from 4.5 percent to 6.5 percent, up from a previous forecast that had sales growth in the range of 4 percent to 6 percent. In a company statement, Cisco’s finance chief Scott Herren said that the company delivered strong results and accounted the company’s guidance forecast partly to an “easing supply situation.” Although the company reported impressive numbers, it is still facing challenges with growth as the technology world is rapidly shifting to cloud and subscription software, and away from buying physical boxes. The company’s top business segment generated revenue of $6.68 billion, up 12 percent from a year ago. This segment houses its data-center networking switches. Its second biggest segment, Internet for the Future, had a revenue decline of 5 percent to $1.3 billion. This segment includes routed optical networking hardware the company picked up through its acquisition of Acacia Communications in 2021. Its Collaboration segment which includes Webex generated $1.1 billion in revenue, down 2 percent year over year. The company’s stock price is down 27 percent this year, while the NASDAQ has declined 29 percent.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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