Cisco Systems 4th quarter results trump projections

Cisco Systems Inc. (CSCO) on Wednesday, reported an increase in profit for the fourth quarter, as revenues rose eight per cent.

This it said was in spite of supply chain constraints, impacting on the industry.

Both earnings and revenues for the quarter, trumped estimated projections.

However, Cisco stock, slipped 1.5 per cent in extended session, after the company issued a guidance that disappointed investors.

San Jose, California-based Cisco System’s fourth-quarter profit rose to 3.01 billion dollars or 0.71 per share, from 2.64 billion dollars or 0.62 per share in 2020.

On an adjusted basis, earnings for the quarter were 3.55 billion dollars or 0.84 per share for the period, compared to 3.39 billion dollars or 0.80 per share in 2020.

Analysts had expected the company to earn 0.82 dollars per share, according to figures compiled by Thomson Reuters.

Analysts’ estimated typically excluded special items.

Cisco said its revenues for the quarter grew 8.1 per cent to 13.13 billion dollars, from 12.15 billion dollars in 2020.

Analysts had a consensus revenue estimate of 13.03 billion dollars, for the quarter.

The company reported product revenue growth of 10 per cent and service revenue increase of three per cent.

“We continue to see great momentum in our business as customers are looking to modernise their organisations for agility and resiliency.

“The demand for Cisco technology is strong with our fourth quarter performance, marking the highest product order growth in over a decade.

“With the power of our portfolio, we are well positioned to help our customers accelerate their digital transformation and thrive in a hybrid world,’’ said CEO, Chuck Robbins.

Looking forward to the first quarter, Cisco expected adjusted earnings of 0.79 to 0.81 dollars per share and revenue growth of 7.5 per cent to 9.5 per cent.

Analysts currently estimated earnings of 0.81 dollars per share. For the full year 2021, the company expected adjusted earnings of 3.38 to 3.45 dollars per share and revenues of five per cent to seven per cent.

Analysts also currently estimated earnings of 3.40 dollars per share on revenue growth of 4.40 per cent.

Cisco closed Wednesday’s trading at 55.15 dollars, down 0.86 dollars or 1.54 per cent on the Nasdaq.

The stock further slipped 0.86 or 1.56 per cent in after-hours trade.