Cisco CEO Chuck Robbins participates in a Bloomberg Television interview at the World Economic Forum in Davos, Switzerland, on Jan. 18, 2023.
Hollie Adams | Bloomberg | Getty Images
Cisco shares rose as much as 8% in extended trading on Wednesday after the maker of computer networking ear announced fiscal second-quarter results that topped Wall Street expectations.
Here’s how the company did:
- Earnings: 88 cents per share, adjusted, vs. 86 cents per share as expected by analysts, according to Refinitiv.
- Revenue: $13.59 billion, vs. $13.43 billion as expected by analysts, according to Refinitiv.
Cisco’s total revenue grew 7% year over year in the quarter, which ended Jan. 28, according to a statement. Net income decreased about 7% to $2.77 billion.
Some components that go in Cisco’s hardware products remain constraints, but the company did see an improvement across the board, CEO Chuck Robbins said on a conference call with analysts.
The company called for fiscal third-quarter adjusted earnings of 96 cents to 98 cents per share and 11% to 13% revenue growth. Analysts surveyed by Refinitiv had been looking for adjusted earnings per share of 89 cents and revenue of $13.58 billion, which implies almost 6% growth.
Cisco lifted its guidance for the 2023 fiscal year, and now expects $3.73 to $3.78 in adjusted earnings per share and 9% to 10.5% revenue growth. Both numbers are well ahead of analysts’ estimates.
Cisco’s largest business segment, Secure, Agile Networks, featuring networking switches for data centers, posted $6.75 billion in revenue. That was up 14% and more than the $6.52 billion consensus among analysts polled by StreetAccount.
The Internet for the Future unit, which includes routed optical networking hardware, contributed $1.31 billion, down 1% and just below the $1.32 billion StreetAccount consensus.
Revenue from Cisco’s Collaboration division containing Webex fell by 10% to $958 million, falling short of StreetAccount’s $1.06 billion consensus.
In the quarter, Cisco announced updates to its AppDynamics cloud software for application monitoring and disclosed a restructuring plan that includes changes to its real estate portfolio.
Notwithstanding the after-hours move, Cisco shares have inched about 2% higher, while the S&P 500 index is up 8% in the same time period.
This is breaking news. Please check back for updates.
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