Cisco issues upbeat guidance despite 13% hit to revenue in Q3

By:
on May 15, 2024
Listen
  • Cisco reported its financial results for third quarter on Wednesday.
  • Here's what its CEO Chuck Robbins said in a press release today.
  • Cisco stock is now up more than 10% versus its year-to-date low.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Cisco Systems Inc (NASDAQ: CSCO) is pushing to the upside in extended hours on Wednesday after reporting market-beating financial results for its third quarter.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Cisco stock rallies on upbeat guidance for Q4

Copy link to section

Investors are cheering also because the management issued upbeat guidance for the future. $CSCO now forecasts its revenue to fall between $53.6 billion and $53.8 billion on up to $3.71 a share of adjusted EPS in fiscal 2024.

Analysts, in comparison, were at $53.14 billion and $3.67 per share, respectively. Chuck Robbins – the chief executive of Cisco Systems said in a press release today:

Our unique ability to bring together networking, security, observability, and data enables Cisco to offer our customers unrivaled digital resilience for the AI era.

The Nasdaq-listed firm saw its product revenue tank 19% in the recently concluded quarter which was partly offset by a 6.0% increase in its services revenue. Cisco stock is now up more than 10% versus its year-to-date low.  

Cisco Q3 earnings snapshot

Copy link to section
  • Earned $1.90 billion versus the year-ago $3.20 billion
  • Per-share earnings also went down from 78 cents to 46 cents
  • Adjusted EPS printed at 88 cents a share as per the earnings report
  • Revenue declined 13% year-over-year to $12.7 billion
  • Consensus was 82 cents a share on $12.53 billion in revenue
  • Splunk revenue came in at $413 million for the third quarter
  • Improved gross margin by 170 basis points in fiscal Q3
  • Annual recurring revenue of $29.2 billion was up 22%
  • Ended Q3 with $38.8 billion of remaining performance obligations

Cisco increased its quarterly dividend by 2.5% to 40 cents per share on Wednesday. According to its CFO Scott Herren:

Customers are consuming equipment shipped in line with our expectations and we are seeing stabilization of demand as a result. The addition of Splunk to our product line will be a catalyst for further growth.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
USA Earnings Reports North America Stock Market Tech World