Cisco Systems‘ (CSCO) fiscal 2023 revenue outlook came in ahead of expectations while fiscal fourth-quarter results for 2022 topped Wall Street estimates. CSCO stock jumped on the news.
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The computer networking giant reported earnings for the July quarter after the market close on Wednesday. Cisco stock surged 5.3% to 49.14 in extended trading on the stock market today.
Adjusted earnings for CSCO stock came in at 83 cents per share, down 1% from a year earlier. Revenue was flat at $13.1 billion, including acquisitions.
Analysts estimated that Cisco would earn 82 cents per share on revenue of $12.73 billion, according to FactSet.
Cisco Stock: 2023 Sales Guidance Above Views
For its current fiscal first quarter ending in October, Cisco forecast profit in a range of 82 cents to 84 cents vs. estimates of 84 cents. Cisco projected revenue growth of 2% to 4%, compared with projections for flat sales growth.
For fiscal 2023, Cisco said it expects sales growth in a range of 4% to 6% vs. estimates of 3% sales growth to $52.7 billion.
Heading into the Cisco earnings report, the company owned a Relative Strength Rating of 26 out of a best-possible 99, according to IBD Stock Checkup. CSCO stock had declined 26% in 2022.
In addition, CSCO stock has shifted away from its core business of selling network switches and routers. With acquisitions, Cisco has aimed to increase revenue from software and services.
But Cisco’s pivot to subscription software revenue has stalled. Software has hovered around 30% of total revenue for the last six quarters, said a Raymond James report.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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