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According to the statement issued by Cisco, the company has managed to amplify its revenue by 8% in the fiscal fourth quarter.
Cisco Systems Inc (NASDAQ: CSCO) has reported an increase in gross revenue by 8% in the fiscal fourth quarter which ended on July 31st. According to earlier reports, the previous quarter comprised revenue growth exceeding up to 7% on an annualized basis. The gross margin has also experienced market contractions and is currently positioned at 63.6% from 63.9%.
Cisco Reports Successful Quarterly Estimates with a Slight Decrease in Earnings
CEO of Cisco Chuck Robbins on a conference call with analysts has further commented that the company might still experience some supply challenges and cost impacts that can affect the revenue to a certain extent in the first half of the fiscal year. He later stated that this can further escalate into the second year as well. It is to be noted that Cisco had previously indicated that they might face supply restraints in the year 2021.
Following the trajectory, Cisco’s finance chief Scott Herren had stated that the company will be facilitating an increase in prices and have raised prices of certain Cisco products on August 7 owing to the concerns related to the supply environment. Cisco is also approaching new brokers to stimulate extra supply which will organically pump up the prices of the company’s existing products. The company will be evaluating its next move whether to adjust the prices accordingly or not.
The infrastructure platform segment of Cisco which constitutes the sale of ethernet switches and routers for data centers has reported a revenue of $7.55 billion in sales, which is more than $7.11 billion that analysts had previously anticipated. Similarly, another primary application unit comprising Webex video calling products has reported revenue amounting to $1.34 billion in sales.
As far as earning guidance is concerned, Cisco has reported that it sees 79 cents to 81 cents in adjusted fiscal first-year earnings and has secured 7.5-to 9.5% revenue growth. According to data compiled by Refinitiv, the analyst poll had been expecting 81 cents per share on $12.84 billion in revenue which indicates approximately 7.5% revenue growth. As per Scott Herren, the company’s gross margin is likely to contract and will adjust at 63.8 in the first fiscal quarter because of extra costs related to supply restraints.
Cisco has also issued guidance for the fiscal year 2022 and has called for $3.38 to $3.45 per share adjusted earnings and 5-7% worth of revenue growth whereas according to analysts surveyed by Refinitiv, the organization had expected the company’s adjusted earnings to $3.41 per share along with $15.91 billion revenue which denotes a considerable 4% growth to the overall structure. Cisco’s stock is up by 24% since the beginning of the year following the 30% rise in the S&P 500 Index at the same time.