Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
Cisco has upped its guidance for the 2023 fiscal year to between $3.73 and $3.78 adjusted earnings per share
Technology company Cisco Systems Inc (NASDAQ: CSCO) outperformed projections for earnings and revenue in its fiscal Q2. According to a press release, Cisco recorded $13.6 billion in revenue during the fiscal Q2, representing a 7% increase YoY. Analysts also expected the quarterly revenue to come in at $13.43. Following the fiscal Q2 financial results release, Cisco jumped in extended trading. At press time, CSCO is up 3.51% in pre-market hours as it trades at $50.25.
Cisco Beats Expectations in Fiscal Q2
In addition, the computer networking company’s earnings per share for the last quarter was 88 cents, more than the 86 cents forecast. Cisco noted that revenue for its total software advanced 10% compared to the previous year, and software subscription revenue advanced 15% in the same period. It added in the earnings report that the remaining product remaining performance obligation (RPO) grew 7% YoY, and RPO popped 4% to $31.8 billion. The dividend for the fiscal quarter was also up 3%.
As Cisco surpassed projections in its fiscal Q2, the company is confident that growth will continue over the coming quarters. In addition to confirming the stability in demand, the company’s chair and CEO, Chuck Robbins, wrote:
“With Cisco’s strong Q2 performance, our fiscal 2023 is shaping up to be a great year. The modern, highly secure networks we are building serve as the backbone of our customers’ technology strategy. This, combined with the success of our ongoing business transformation and operational discipline gives me confidence in our future.”
According to Robbins, Cisco’s public sector business recorded its best performance in history. The earnings report for the fiscal Q2 and the confidence in continued growth made Cisco raise its guidance for the 2023 fiscal year. Firstly, the company expects to see 96 to 98 cents per share in the fiscal Q3. This equals 11% to 13% revenue growth for the current quarter. Meanwhile, analysts predicted 89 cents and $13.58 billion in revenue, representing about a 6% increase.
Cisco Ups Full-Year Guidance
Furthermore, Cisco has upped its guidance for the 2023 fiscal year to between $3.73 and $3.78 adjusted earnings per share. Cisco also calls for revenue growth to fall between 9% and 10.5%. Notably, the reviewed predictions are over analysts’ forecasts. Chief financial officer Scott Herren commented:
“We continue to execute well, delivering better than expected results in revenue, record non-GAAP EPS and operating cash flow. We are raising our full year outlook driven by our growing recurring revenue base and RPO, along with our healthy backlog and the steps we have taken to improve supply. We have once again increased our dividend, reflecting the strength of our cash flow generation and commitment to shareholder returns.
Cisco stock has gained nearly 2% since the start of 2023 and jumped almost 4% in the last three months.