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Highlights From Cisco’s Q4 Earnings Release

By John F. Heerdink, Jr.

Cisco Systems, Inc. (CSCO) reported their fourth-quarter earnings this week, slightly above estimates but earnings guidance was just slightly off. The technology giants stressed and raised concerns over supply constraints. In May, Cisco had indicated it could face supply constraints at least through the end of 2021. Cisco also raised prices for some products on Aug. 7 because of the supply environment, informed Scott Herren, Cisco’s finance chief. 

“Looking ahead we expect the supply challenges and cost impacts to continue through at least the first half of our fiscal year, and potentially into the second half,” stated CEO Chuck Robbins on a conference call. 

Fourth-Quarter Earnings Highlights:

  • Adjusted earnings of 84 cents per share, was reported versus 82 cents per share as expected by analysts for the quarter ended July 31.
  • Revenue of $13.13 billion was reported versus $13.03 billion as expected by analysts.
  • The gross margin narrowed to 63.6% from 63.9% in the prior quarter.
  • The Infrastructure Platforms segment, which includes sales of Ethernet switches and routers for data centers and accounts for most of Cisco’s revenue, delivered $7.55 billion in sales. That’s up 13% year over year and more than the $7.11 billion that analysts had expected.
  • Cisco’s Applications segment, which comprises sales from Webex video-calling products, produced $1.34 billion in sales, a drop of 1% and below the $1.46 billion estimates.
  • Security revenue came in at $823 million, up 1% but missing the $904.7 million expectation.
  • In the quarter, Cisco acquired start-ups Kenna Security and Socio Labs, which produces event software. Terms were not disclosed.
  • Cisco expects adjusted quarterly earnings of 79 cents to 81 cents in the fiscal first quarter and revenue growth of 7.5% to 9.5%, for guidance. Analysts estimated adjusted earnings of 81 cents per share on $12.84 billion in revenue, implying a 7.7% revenue growth.
  • Cisco issued guidance for the 2022 fiscal year, with $3.38 to $3.45 in adjusted earnings per share and 5% to 7% revenue growth. Analysts estimate adjusted earnings of $3.41 per share and $51.91 billion in revenue.

Cisco Systems, Inc. (CSCO) is a global technology leader that designs, manufactures, and sells Internet Protocol-based networking and other communications technology. To learn more about Cisco Systems, Inc. (CSCO) and to continue to track its progress please visit the Vista Partners Cisco Systems, Inc. Coverage Page

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(Read Original Story: Cisco delivers slight beat as revenue grows 8% in CNBC)


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