Shares of tech company Cisco were up 4.5 percent in extended trading after the company issued its fiscal fourth-quarter earnings on Wednesday. The company’s earnings results exceeded the expectations of analysts. Cisco also issued a better-than-expected projection for the coming fiscal year of 2023.
The company reported adjusted earnings of 83 cents per share for the fiscal fourth quarter, compared to the 82 cents that analysts had expected. Revenue for the quarter came in at $13.10 billion beating the expectation of $12.79 billion that analysts had forecasted for the fiscal fourth quarter.
According to a statement issued by the company, revenue for the quarter ended July 30 declined slightly. Net income for the quarter dropped 6 percent to $2.82 billion. The company’s adjusted gross margin declined from 65.3 percent in the previous quarter to 63.3 percent. Analysts’ expectation for gross margin for the fiscal fourth quarter was 64.7 percent.
For guidance, the company expects adjusted earnings per share of between $3.49 and $3.56 percent for the 2023 fiscal year. Revenue growth is expected to come in between 4 and 6 percent. Analysts, on the other hand, adjusted earnings per share of $3.53 and revenue of $52.79 billion which translates to a 2.3 percent growth. Revenue, however, increased 3.4 percent in the 2022 fiscal year.
The company’s biggest business segment which houses Secure, Agile Networks, and data center networking switches generated $6.09 billion, 46 percent of total revenue. This was down 1 percent year-over-year but surpassed the $5.86 billion that analysts had expected, according to StreetAccount.
The company’s second-biggest segment, Internet for the Future, which houses routed optical networking hardware the company picked up through its 2021 Acacia Communications acquisition, brought in $1.26 billion in revenue, down 10% and below the $1.36 billion estimate from StreetAccount.
The company’s Collaboration segment raked in $1.16 billion in revenue. This was up 2 percent and beat the expectation of $1.10 billion that analysts had expected, according to StreetAccount.
The company’s stock price is down 24 percent this year, while the NASDAQ has declined 17 percent.