Cisco Profit And Revenue Forecast is Very Optimistic
The 4th quarter fiscal results issued by Cisco were better than the projections set by top analysts. On top of that, Cisco has also provided a higher-than-expected forecast for the next year. In line with the new forecast, Cisco stock increased by 4.5% during the extended trading session.
Cisco Stock Performance
The earnings per share of Cisco is around 83 cents (adjusted) which was higher than the 82 cents EPS set by the analysts. If we look at the revenue of Cisco, it was $13.10 billion, which was higher than the $12.79 billion forecast set by the analysts.
In the quarter, the revenue numbers declined a little bit and ended on July 30. The net income was around $2.82 billion (a decline of 6%), which means that the gross margin of Cisco was at 63.3%. According to the analysts, the forecast was around 64.7%.
For the fiscal year 2023, the adjusted EPS set by Cisco is around $3.49 - $3.56 - This is revenue growth of around 4% - 6%. According to a recent poll of analysts, the adjusted EPS (expected) is $3.53, and the revenue is set at $52.79 billion.
Although the fiscal numbers of Cisco are better than the estimates, there are still some problems it will have to face. For starters, the world is moving away from the purchase of physical boxes. We have also seen a shift toward subscription and cloud software.
Just this year, the Cisco stock is already down by 24%, while the Nasdaq index declined by 17%.
Top Business Segments Of Cisco
The top segments of Cisco are agile and secure networks - Which include the networking switches used in the data centres. Just this sector alone brings $6.09 billion in revenue for the company.
Another big segment for the company is the 'Internet for the future'. This involves the optical networking hardware (routed), which brought revenue of $1.26 billion.
The Webex (collaboration segment) revenue was around $1.16 billion, which saw an increase of 2%. This was higher than the forecast of $1.10 billion set by the experts.
During the current quarter, the company announced a device called the video desk phone. On top of that, the company has also announced the availability of some new features for the Webex service.