Shares of Cisco Systems Inc. fell 6% in extended trading Wednesday after the computer networking company reported first-quarter financial results that were slightly above Wall Street estimates but offered cautious guidance.
reported net income of $3 billion, or 70 cents a share, compared with net income of $2.2 billion, or 51 cents a share, in the previous quarter. The company’s adjusted net income was $3.5 million, or 82 cents a share.
Revenue rose 8% to $12.9 billion, from $11.9 billion a year ago. Analysts surveyed by FactSet had expected earnings of 80 cents and revenue of $12.98 billion.
The company expects profit of 64 cents to 68 cents a share, or 80 cents to 82 cents on an adjusted basis, for its fiscal second quarter. Analysts forecast 70 cents and 82 cents, respectively, according to FactSet.
Cisco, like most major tech component suppliers, is dealing with supply chain issues that have offset some of its strong sales. The driving force of the conflict is at the heart of many analysts’ notes to Monday’s warehouse.
Cisco CFO Scott Herren told MarketWatch in a phone interview that product order growth was up 33% from a year ago, a 21% increase in year-over-year revenue. -Speed and strong demand across all sectors and geographies.
“But we can’t convert demand into revenue, at least in a 90-day cycle” because of supply chain issues that limit access to parts like semiconductors, power supplies and memory, as well as logistical errors, he added.
“All that backlog and ARR eventually becomes revenue,” says Herren.
Safety, Agility ($5.97 billion, up 10% y/y), Services revenue ($3.4 billion, up 1%) and Internet for the Future (1 $3.38 billion, up 46%) leads the way in revenue categories.
This quarter marks the first time that Cisco has divided product and services revenue into seven new categories: Secure, agile networks; Combined work; End-to-end security; Internet for the future; Optimized app experience; Other products; And service.
has increased by 25% this year.
https://www.marketwatch.com/story/cisco-stock-drops-nearly-7-after-earnings-guidance-disappoints-11637184086?rss=1&siteid=rss Cisco shares drop 6% after disappointing earnings guidance