February 3, 2023

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Cisco Systems stock gains on earnings, tops revenue by Investing.com

©Reuters. Cisco Systems (CSCO) Stock Gains On Earnings, Sales Hit

By Sam Boughedda

Cisco Systems (NASDAQ:) shares were up after the close on Wednesday after the company released its first-quarter results.

The digital communications company beat consensus estimates for earnings and sales with adjusted earnings per share of $0.86, $0.02 better than analysts’ estimate of $0.84, on sales of 13, $6 billion, ahead of expectations of $13.29 billion.

Cisco shares are currently trading 4.75% up from Wednesday’s close of $46.50 per share.

The company’s total annual recurring revenue (ARR) was $23.2 billion in the fiscal first quarter, up 7% year over year, with product ARR up 12%. Additionally, software revenue increased 5%, while software subscription revenue increased 11% year over year.

“Our 2023 fiscal year got off to a good start as we delivered the largest quarterly revenue and second-highest quarterly non-GAAP earnings per share in our history,” said Chuck Robbins, Cisco chairman and CEO. “These results demonstrate the relevance of our strategy, our differentiated innovation and our unique position to help our customers become more resilient.”

The company added that its easing supply chain situation, along with its annual increase in recurring revenue, substantial backlog and strong remaining performance obligations, gives the company “great visibility and predictability.”

Based on the positive result, Cisco raised its full-year guidance. It now projects FY23 adjusted earnings per share of between $3.51 and $3.58, while expecting revenue growth for the period from 4.5% to 6.5%.

Adjusted earnings per share for the fiscal second quarter are expected to be in the range of $0.84 to $0.86, while revenue is expected to grow from 4.5% to 6.5% over the period.