Cisco Systems, Inc. (CSCO) recorded a Q2 earnings beat giving a bullish forecast for the current quarter and boosting its share buyback program. The company forecasts sales to increase 3% to 5% in the period ending in April, compared with an average analyst projection of 4% revenue growth, or $13.3 billion. Excluding certain items, earnings will be 85 cents to 87 cents a share.
The majority of Cisco’s income comes from hardware and reliance on equipment sales that has made the company vulnerable to industry-wide shortages of electronic components, pushing up costs. Chief Financial Officer Scott Herren informed that the company now has a backlog of $14 billion, higher than it was a year ago, and orders increased by more than 30% for a third consecutive quarter.
Cisco announced a $15 billion increase to its share buyback program, which brings the total repurchase authorization to $18 billion. Sales in the Secure Networks unit, which includes networking hardware such as switches and routers, increased 7% to $5.9 billion in the quarter. Revenue from the Internet for the Future, which includes optical networking and 5G-related products, soared 42% to $1.32 billion, exceeding estimates. Hybrid Work, which includes Webex and other collaboration products, dropped 9% to $1.07 billion. Services revenue was $3.37 billion, a decrease of 1% from the period a year earlier and less than the average estimate of $3.45 billion.
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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