Cisco shares jump after networking company beats estimates, boosts full-year guidance

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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 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.

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.

Executives will discuss the results with analysts on a conference call starting at 4:30 p.m. ET.

This is breaking news. Please check back for updates.

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