By
Chimamanda U. Martha
February 13th, 2024
In the second quarter, Cisco recorded a revenue of $12.7 billion, which is an increase of 6 percent year over year.
Cisco Systems Inc (NASDAQ: CSCO) stock traded around $56.15 during Wednesday’s extended trading period, up approximately 3.50 from the day’s closing price. After the internet boom famously called the dot-com bubble, CSCO shares have never recovered from the crash afterward. However, hope is re-emerging after two decades of consolidation mixed with the bear market.
The American multinational technology conglomerate reported a double-digit in its revenue for the second-quarter earnings, which ended on January 29, 2022. The hope is rekindled by the fact that the company outlined the guidance for its Q3. Whereby the company expects to record 3 percent to 5 percent growth year-over-year in revenue.
During the second quarter, Cisco recorded a revenue of $12.7 billion, which is an increase of 6 percent year over year. GAAP earning per share for the second quarter came in at $0.71 while the non-GAAP EPS came in at $0.84.
“We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Cisco’s innovation,” said Chuck Robbins, chair and CEO of Cisco. “Our robust order strength, record backlog, and double-digit growth in annual recurring revenue position us well to deliver growth.”
For the financial year 2022, the company issued guidance that expects the Silicon Valley behemoth to record year-over-year revenue growth of between 5.5 percent and 6.5 percent.
Notably, the company’s net income for the second quarter came in at $3.5 billion compared to $3.4 billion in a similar time last year.
Cisco Stock Market and Its Business Outlook
Cisco stock has gained approximately 17.30 percent in the past year but has since declined approximately 14.39 percent year to date according to market data provided by MarketWatch. Worth noting, Cisco stock has gained approximately 67,099 percent from its IPO price before the beginning of this century, according to stock market data provided TradingView.
Otherwise, according to a survey conducted by MarketWatch, 28 ratings have given Cisco stock an average rating of Over. The company has a market capitalization of approximately $228.89 billion with 4.22 billion shares outstanding.
In the past 52 weeks, CSCO shares have ranged between $44.15 and $64.29. Should the recent gains continue in the coming quarters, then retesting its all-time high will be imminent.
As a technology-based company in Silicon Valley, Cisco has seen huge demand due in h the past two years when the coronavirus crisis has been sustained.
In a statement through the earnings report Scott Herren, CFO of Cisco said: “We delivered healthy margins while continuing to make good progress in our business model shift, with software product revenue growing 9% year over year and the product portions of ARR and RPO growing in double digits. The combination of our dividend increase and additional share repurchase authorization demonstrates our commitment to returning excess capital to our shareholders and confidence in our ongoing cashflows.”