Systems Inc. raised its outlook for the year after posting better-than-expected results, a bright spot among technology companies facing continuing challenges from inflation and other macroeconomic impacts.
The results beat Cisco’s forecast for the quarter on both the top and bottom lines, and its outlook for the current quarter also came in ahead of Wall Street estimates, according to FactSet.
Shares were up more than 6% in aftermarket trading.
Chief Financial Officer
attributed the increased full-year outlook to Cisco’s growing recurring revenue base and remaining performance obligations, backlog and steps taken to improve its supply.
The networking-equipment company’s results contrast with those of other tech companies that have reported slower growth as customers extend deal cycles and tighten their budgets in response to economic uncertainty. Companies across most sectors, but particularly those in technology, have cut jobs as a result.
Tech companies that soared during the Covid-19 pandemic have signaled that such growth might be behind them.
last month posted its slowest quarterly sales growth in more than six years, while
and other cloud-services companies have warned of sputtering sales.
Cisco posted net income of $2.77 billion, or 67 cents a share, for the second quarter ended Jan. 28, down from $2.97 billion, or 71 cents a share, a year earlier. Adjusted earnings were 88 cents a share, above analysts’ estimates of 85 cents.
Revenue increased 7% to $13.59 billion. Cisco in November forecast between 4.5% and 6.5% growth for the second quarter. Analysts polled by FactSet expected $13.42 billion.
For the current fiscal year, Cisco now expects revenue to rise between 9% and 10.5% year-over-year. It also expects adjusted earnings between $3.73 and $3.78 a share. The company’s outlook is up from its previous guidance of revenue growth between 4.5% and 6.5% and adjusted earnings between $3.51 and $3.58 a share.
For the current quarter, Cisco forecast revenue growth between 11% and 13% year-over-year and adjusted per-share earnings between 96 cents and 98 cents a share. Analysts were looking for revenue to rise 5.8% and earnings of 79 cents a share.
Write to Denny Jacob at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the February 16, 2023, print edition as ‘Cisco Raises Outlook, Logs Revenue Gain.’
#Cisco #Raises #Outlook #Earnings #Top #Expectations