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Cisco Q1 Earnings Disappoints Analysts – $CSCO Lowers Forecast Per Supply Constraints

By John F. Heerdink, Jr.

Cisco Systems, Inc. (CSCO) disappoints as first-quarter revenue fell short of analysts’ expectations and issued weaker-than-expected guidance. Adjusted earnings per share of 82 cents per share were reported, versus 80 cents per share expected. Revenue of $12.90 billion was reported, versus $12.98 billion as expected by analysts. Revenue rose 8% in the first quarter from a year earlier. Net income of $3 billion was reported. The largest category under the new structure, Secure, Agile Networks, which includes data center networking switches, generated $5.97 billion in revenue, up by 10%.

The Internet for the Future category, comprising routed optical networking, public 5G, silicon, and optics products, reported $1.37 billion in revenue, up 46%. Revenue in the Hybrid Work category, including Webex collaboration products, dropped 7% to $1.11 billion.

The company faced supply constraints, CEO Chuck Robbins stated, “We’ve been taking multiple steps to mitigate the supply shortages and deliver products to our customers, including working closely with our key suppliers and contract manufacturers, paying significantly higher logistics costs to get the components where they are most needed, working on modifying our designs to utilize alternative suppliers where possible and constantly optimizing our build and delivery plans”.

Cisco expects second-quarter earnings-per-share to be between 80 cents and 82 cents, excluding some items, on 4.5% to 6.5% annualized revenue growth. For the full fiscal year, the company forecasts $3.38 to $3.45 in adjusted earnings per share and 5% to 7% revenue growth. Analysts were expecting earnings of $3.42 per share and $52.87 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


Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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(Read Original Story: Cisco reports disappointing revenue and issues forecast that misses estimates in CNBC)


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