In the last balance presented by cisco, the company has been optimistic regarding the results of the first quarter. Despite orders decreased by 23%and therefore caused a fall in the shares, the estimates are positive and it is expected that during the year there will be a clear ascending line.
Demand for equipment remains stable and the supply chain is improved, overcoming the problems of scarcity and high cost of raw materials. CISCO CEO, chuck Robbinsensures that this environment gives customers a greater confidence to buy equipment. And it is that despite the global economic recession that affects all sectors and the restrictive regulations of certain countries, the increase in the flow of data drives consumers to acquire new devices.
Another positive aspect, which CISCO collects in its latest study, is that lorder cancellationse is at levels well below the historical figures recorded, something that suggests that it will be a very positive year in the company’s annual accounts.
Regardless of the level of demand for equipment, the key to Cisco’s success lies in its power to maintain a diversified business portfolio, thus managing risk during recessions. Now it has crossed the barrier of networking and telecom products and solutions to also offer software solutions for network management, collaboration, security, analytics, cloud computing and IoT.
If it has been able to maintain itself, it is thanks to its historic strategy of cutting costs and personnel, as well as to improve your operational efficiency. However, it faces the commercial risk of the US entering a harsh economic recession that affects its shares.
In spite of everything, its shareholding power was reduced and shares lost nearly 4% in extended hours. The multinational reported results that outperformed the market in its third financial quarter. Tech stocks fall, after huge exponential growth experienced during the pandemic, though Cisco is optimistic, raising its guidance.
Thus, now requires between $3.80 and $3.82 in adjusted earnings by action, with annual revenue growth of 10-10.5%. During the last quarter it acquired 3,200 million dollars, surpassing the 3,000 million of the previous year. Similarly, earnings per share rose from 73 to 78 cents and the adjusted EPS printed at one dollar. Regarding your EPS during the third quarterthis was one dollar, exceeding the estimates by 0.03 dollars.
Revenue increased by 14% to $14.57 billion, with $11.1 billion coming from its ‘Products’ segment and $3.5 billion from the ‘Services’ category. His quarterly dividend per share it was 39 cents as of May 17.
Your estimates
The company now expects that during the fourth fiscal quarter its share value will be between $1.05 and $1.07 per share, with a growth of 14-16%. In addition, Cisco shares fell 3.9% to $45.77 in the after hours.
Cisco waits your EPS is $1.05-1.07 against initial forecasts of $1.04. These conclusions are reached after the company recorded 20 positive EPS reviews in the last 90 days, denoting a good performance financial health score.
His latest advances
CISCO maintains its strategy of guaranteeing a optimal digital experience through applications in all business interactions. With the addition of Customer Digital Experience Monitoring Enterprises gain application and network insights, with real-time Internet connectivity metrics and application dependency maps.
This new service is available without additional installations, reducing mean time to resolution, increasing visibility, and helping teams prioritize the network based on business criticality. It also facilitates collaboration between Infrastructure and Operations, Application Developers, SecOps, and DevSecOps teams. In this way, companies will be able to move faster and achieve a better user experience and profitability.
