Cisco reported better-than-anticipated fiscal second-quarter earnings and revenue estimates and also lifted its prediction for the full year. Shares of the Cisco initially jumped in extended trading before paring most of its gains.
The total revenue of Cisco grew 7% year over year in the quarter ended on Jan. 28.
CEO Chuck Robbins said, “Some components that go in Cisco’s hardware products remain constraints, but the company did see an improvement across the board. Based on the sequentials that we saw, demand remains stable although some sales cycles are longer than usual.”
Robbins added, “Cisco’s public sector business performed more strongly than it has historically, while in the service provider category, some customers are adjusting to the better delivery of the company’s products into their environments.”
Cisco lifted its forecast for the 2023 year, and now anticipates $3.73 to $3.78 earnings per share and it sees revenue growth in the range of 9% to 10.5%.
Cisco’s finance chief Scott Herren said, “The backlog for both hardware and software is still considerably higher than usual for Cisco because of limited supply availability. We continue to have very low order cancellation rates, which remain below pre-pandemic levels. Logistics costs have come down somewhat.”