Cisco CEO Chuck Robbins speaks at the Wall Street Journal Future of Everything Festival in New York on May 21, 2024.
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Cisco The company still reported its fourth straight quarter of revenue declines, despite results that beat analysts’ expectations. The stock fell about 1% in after-hours trading.
Here’s how the company compares to the LSEG consensus:
- Earnings per share: Adjusted 91 cents, expected 87 cents
- income: US$13.84 billion, expected US$13.77 billion
Cisco’s revenue fell 6% in the quarter ended Oct. 26, down 6% from $14.7 billion in the same period last year, according to data from Cisco. statement. Net income fell to $2.71 billion, or 68 cents a share, from $3.64 billion, or 89 cents a share, a year earlier.
Internet revenue plunged 23% to $6.75 billion, slightly below the $6.8 billion consensus estimate of analysts polled by StreetAccount.
Security revenue doubled to $2.02 billion, beating the StreetAccount consensus forecast of $1.93 billion. Cisco’s collaboration revenue was $1.09 billion, slightly below consensus estimates of $1.04 billion.
Cisco Chief Executive Chuck Robbins said on a conference call Wednesday that orders for artificial intelligence infrastructure from large customers exceeded $300 million this quarter. Server manufacturer, e.g. Dell and HP It also focuses on selling hardware that can help customers implement generative artificial intelligence.
“We’re winning more design wins and remain confident we will surpass our goal of $1 billion in AI orders from web-scale customers this fiscal year,” Robbins said.
Robbins said U.S. government agencies have delayed deals with Cisco rather than canceling them entirely. Cisco Chief Financial Officer Scott Herren said that this development stems from the passage of the Fiscal Responsibility Act of 2023, which limits U.S. government spending.
“It looks like Republicans are going to win both houses of Congress and the White House, so I expect the budget will be in place very quickly,” Herron said.
This quarter, Cisco acquired security startups DeepFactor and Robust Intelligence.
Cisco raised its full-year adjusted earnings per share guidance to $3.60 to $3.66 on revenue of $55.3 billion to $56.3 billion, up from its previous forecast of EPS of $3.52 to $3.58 and revenue of $55 billion to $56.2 billion. Guidance indicates that revenue is expected to grow 3.3%, which is in the middle of the range.
Analysts expect adjusted earnings per share this year of $3.58 on revenue of $55.89 billion.
Cisco shares were up 17% year to date as of Wednesday’s close, while the S&P 500 had gained about 26% during that period.
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