Cisco Systems, Inc. (CSCO) released its third-quarter earnings this week and raised concerns that supply chain issues will be prevalent till the end of 2021. The technology giant also forecast its current-quarter profit below estimates.
“Notwithstanding what’s going on in the supply chain, our revenue guide would have been higher, which could have probably flowed through to improving EPS as well,” stated Chief Executive Officer Charles Robbins during an earnings call.
Cisco reported adjusted earnings per share of 83 cents versus 82 cents per share for the quarter ending May 1. Revenue of $12.80 billion was reported, versus $12.56 billion analyst estimates. Net income increased to $2.86 billion, or 68 cents per share, from $2.77 billion, or 65 cents per share. Cisco’s service revenue surged 8% and product revenue rose 6%, driven by continued demand for its virtual private network, videoconferencing platform, and cybersecurity products as offices still remained closed.
“Double-digit growth in orders was something we’d not seen since 2012. There’s a lot to feel good about right now,” stated Cisco Chief Financial Officer Scott Herren.
Herren informed that 81% of the company’s $3.8 billion fiscal third-quarter software revenue was from subscriptions or was recurring. The company forecast a fourth-quarter profit of 81 cents to 83 cents per share, lower than estimates of 85 cents per share, and expects 6% to 8% revenue growth.
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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