CSCO Stock: Cisco Earnings Top Estimates, Revenue Outlook Light

Cisco Systems (CSCO) issued a weaker-than-expected revenue outlook for fiscal 2024 while fiscal fourth-quarter earnings topped estimates. CSCO stock initially fell then reversed up during the company’s earnings call with analysts.


For the period that ended July 29, Cisco earnings rose 37% to $1.14 per share. Revenue climbed 16% to $15.2 billion.

Analysts estimated that Cisco would earn $1.06 per share on revenue of $15.05 billion, according to FactSet.

Cisco stock climbed 2.6% to 54.34 in extended trading on the stock market today. The computer networking giant reported earnings after the market close.

Cisco Stock: Revenue Outlook Light

For fiscal 2024, Cisco said it expects sales of $57.6 billion at the mid-point of its outlook, up about 1% year over year. Analysts had predicted 2.7% sales growth to $58.38 billion. Fiscal 2024 starts with the September quarter.

Cisco forecast earnings in a range of $4.01 to $4.08 a share vs. analyst estimates of $4.05 a share. That forecast is up 6% from fiscal 2023.

Cisco’s product order growth, a key financial metric, has turned negative.

Capital spending by cloud computing and telecom customers is expected to slow in 2024. But corporate and government spending could be bright spots.

Heading into the Cisco earnings report, the company owned a Relative Strength Rating of 86 out of a best-possible 99, according to IBD Stock Checkup. CSCO stock had advanced 12% thus far for 2023.

In addition, CSCO stock has shifted away from its core business of selling network switches and routers. With acquisitions, Cisco aims to increase revenue from software and services.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.


IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today

Learn How To Time The Market With IBD’s ETF Market Strategy

How To Use The 10-Week Moving Average For Buying And Selling

Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest

Leave a Comment