Reportedly, Cisco Systems, Inc. (CSCO) lowered its full-year earnings forecast after COVID lockdowns in China and the war in Ukraine pulled sales below estimates in the third quarter. The company now expects revenue growth of 2% to 3% in fiscal 2022, lower than the earlier forecast of 5.5% to 6.5%. Russian and Ukraine war reduced revenue by about $200 million, adding $5 million to Cisco’s cost of sales in the quarter and $62 million in operating expenses. Covid-19 lockdowns in China also exacerbated component shortages.
Q3 Release Highlights:
- Adjusted EPS of 87 cents per share was reported, versus 86 cents per share expected.
- Revenue of $12.84 billion, was reported versus $13.34 billion as expected by analysts.
- Net income rose 6% to $3.04 billion.
- Software revenue dropped 3% to $3.7 billion.
- Cisco informed its Secure, Agile Networks segment, which includes data-center networking switches, that contributed $5.87 billion in revenue, representing 4% growth.
- Cisco’s Internet for the Future unit contributed $1.32 billion, up 6% and below the $1.44 billion estimates.
- The Collaboration segment that includes Webex reported revenue of $1.13 billion, down 7% and in line with the estimates.
- During the quarter Cisco changed its policy so that customers can’t cancel orders within 45 days of the committed ship date.
Cisco expects for 76 cents to 84 cents in adjusted earnings per share and a year-over-year decline in revenue of 1% to 5.5% for the fiscal fourth quarter.
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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