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CSCO Stock: Top Cisco Earnings Estimates, Product Demand Growth Accelerates

Cisco systems (CSCO) issued a weaker-than-expected revenue forecast for fiscal 2024 while fourth-quarter earnings beat estimates. CSCO stock initially fell, then reversed higher during the company’s earnings call with analysts.




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For the period ended July 29, Cisco’s dividend rose 37% to $1.14 a share. Revenue increased 16% to $15.2 billion. Analysts estimated Cisco would earn $1.06 per share on revenue of $15.05 billion, according to FactSet.

Cisco officials say product order growth, a key financial metric, came in strong during the quarter.

“In the fourth quarter, we delivered 30% overall growth in orders for serial products, the second-highest rate in 20 years, with double-digit increases across all customer markets,” CEO Charles Robbins said on the earnings call with analysts, according to FactSet. text.

Cisco stock rose 2.6% to 54.34 in extended trading in the stock market today. The computer networking giant reported earnings after the market closed.

Cisco stock: Revenue Outlook Light

For fiscal 2024, Cisco said it expects sales of $57.6 billion in the middle of its forecast, up about 1% year-over-year. Analysts had expected sales to grow by 2.7%, to $58.38 billion. Fiscal year 2024 begins with the September quarter.

Cisco forecast earnings of $4.01 to $4.08 per share versus analyst estimates of $4.05 per share. This forecast increases by 6% from fiscal year 2023.

Capital spending by cloud computing and telecom customers is expected to slow in 2024. But corporate and government spending should be the bright spots.

Heading into Cisco’s earnings report, the company has a relative strength rating of 86 out of the best possible 99, according to IBD stock check. CSCO stock is up 12% year-to-date for 2023.

In addition, CSCO stock has shifted away from its core business of selling network switches and routers. Through acquisitions, Cisco aims to increase revenue from software and services.

Follow Reinhardt Krause on Twitter @tweet For updates on 5G wireless networks, artificial intelligence, cybersecurity, and cloud computing.

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