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Cisco (CSCO) Q4 2022 Results


Cisco on Wednesday released fiscal fourth-quarter results that beat analysts’ forecasts and provided better-than-expected guidance for the year ahead. The stock rose 2.5% in extended trading.

Here’s how the company did it:

  • Earnings: 83 cents per share, adjusted, versus 82 cents per share as expected by analysts, according to Refinitiv.
  • Revenue: $13.10 billion, versus $12.79 billion as forecast by analysts, according to Refinitiv.

Revenue fell slightly in the quarter, which ended July 30, according to a statement. Net income fell 6% to $2.82 billion as the company’s adjusted gross margin narrowed to 63.3% from 65.3% in the prior quarter. Analysts had predicted 64.7%.

For fiscal 2023, Cisco has forecast adjusted earnings per share of $3.49 to $3.56 and revenue growth of 4% to 6%. Analysts polled by Refinitiv had expected adjusted earnings of $3.53 per share, with revenue of $52.79 billion, up 2.3%. In fiscal 2022, revenue increased by 3.4%.

Although Cisco’s numbers generally beat estimates, the company is still struggling to grow as the tech world rapidly shifts to cloud and subscription software and away from buying physical boxes. The company’s stock price is down 24% this year, while the Nasdaq has fallen 17%.

The company’s main business segment, Secure, Agile Networks, which includes data center network switches, generated 46% of total revenue at $6.09 billion, down 1% from year-over-year, but above the $5.86 billion consensus of analysts polled by StreetAccount.

The second-largest unit, Internet for the Future, which contains routed optical networking hardware the company acquired in its acquisition of Acacia Communications in 2021, generated $1.26 billion in revenue, down 10% and below StreetAccount’s consensus of $1.36 billion.

The Collaboration with Webex segment generated $1.16 billion in revenue, up 2% and above the StreetAccount consensus of $1.10 billion. During the quarter, Cisco announced a new video desk phone and wider availability of background noise cancellation software for its Webex video calling service.

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

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