Cisco reports disappointing revenue and issues forecast that misses estimates

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  • Cisco fell short of analysts’ estimates on revenue in the quarter.
  • The company also issued guidance that missed analyst predictions.

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Cisco shares fell as much as 8% in extended trading on Wednesday after the computer networking company reported quarterly revenue that fell short of analysts’ expectations and issued weaker-than-expected guidance.

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Here’s how the company fared in the first quarter of its fiscal year:

  • Earnings: According to Refinitiv, 82 cents per share, adjusted, versus 80 cents per share, as expected by analysts.
  • Revenue: According to Refinitiv, $12.90 billion versus $12.98 billion expected by analysts.

Cisco said earnings per share in the fiscal second quarter would be between 80 cents and 82 cents, excluding a few items, on 4.5% to 6.5% annual revenue growth. Analysts polled by Refinitiv had expected 82 cents per share in adjusted earnings on $12.85 billion in revenue, meaning a 7.4% increase.

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For the full fiscal year, Cisco was forecast for $3.38 to $3.45 in adjusted earnings per share and 5% to 7% revenue growth. Analysts surveyed by Refinitiv were looking for earnings of $3.42 per share and $52.87 billion in revenue, which would equate to growth of 6.1%.

Revenue grew 8% in the first quarter compared to a year ago, the company said in a Statement, CEO Chuck Robbins on a conference call with analysts said the company was facing a supply crunch.

cisco New product categories announced To report revenue during the period and is now highlighting some of the smaller parts of the business, such as the optimized application experience. The largest category under the new structure, Secure, Agile Networks, which includes data center networking switches, generated $5.97 billion in revenue, up 10%.

The Internet for the Future category, which includes routed optical networking, public 5G, silicon and optics products, generated revenue of $1.37 billion, up 46%. And revenue in the Hybrid Work category, including Webex collaboration products, fell 7% to $1.11 billion.

During the Cisco Quarter showed a preview Webex Holograms, a new way to conduct meetings in augmented reality with meeting participants’ holograms.

Excluding after-hours moves, Cisco shares are up about 28% this year, while the S&P 500 index is up 25% over the same period.

This is breaking news. Please check back for updates.

Watch: Cisco CEO Robbins on global chip shortage: We have a way to go

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