- Cisco exceeded analysts’ estimates in its fiscal second quarter with a revenue of $13.59 billion and 88 cents per share.
- The company’s net income declined by 7%, but its total revenue grew by 7%.
- Cisco’s future outlook looks positive with an expectation of adjusted earnings per share of $3.73 to $3.78 and 9% to 10.5% revenue growth.
Cisco posted results that really impressed investors and shareholders, making its shares price rise slightly. Its fiscal second quarter, which ended on January 28, saw it beat analysts estimates.
The IT company made a revenue of $13.59 billion which was more that the $13.43 billion that analysts projected. Also, it made 88 cents per share which was more than the 86 cents predicted.
While its net income fell by 7% its total revenue grew by 7% when compared to the same period last year. Despite hardware components undergoing constraints, Cisco CEO Chuck Robbins said that demands were stable. He added that its public sector business improved historically too.
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For its future projection, the computer company expects $3.73 to $3.78 in adjusted earnings per share and 9% to 10.5% revenue growth. These numbers are more than what analysts estimated.
However, it is not all smooth-sailing at Cisco as it admitted during the earnings call that its backlog of hardware and software increased during the quarter because of limited supply.
The Webex sector, which is mostly made up of its collaboration offerings, fell by 10%, which is lower than what analysts estimated. Although, it made up for this in its Secure business segment, which saw a 14% increase in revenue.
Cisco says that it is planning to restructure its real estate portfolio and bringing updates to its AppDynamics cloud software for application monitoring.
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