Earnings Results: Cisco stock gains after earnings and revenue beat, annual forecast raised

by | Feb 15, 2023 | Stock Market

Cisco Systems Inc. blew away expectations for revenue growth in the holiday quarter, and executives predicted stronger growth in a revised annual forecast that sent shares more than 3% higher in after-hours trading Wednesday. Cisco
CSCO,
+1.57%
reported fiscal second-quarter net income of $2.8 billion, or 67 cents a share, on revenue of $13.59 billion, up from $12.72 billion a year ago. After adjusting for stock-based compensation and other costs, Cisco reported earnings of 88 cents a share, up from 84 cents a share in the same quarter a year ago.

Analysts surveyed by FactSet on average expected adjusted net income of 85 cents a share on revenue of $13.42 billion. Shares initially climbed more than 11% in after-hours trading following the results, before settling down and ending the session with a 3% gain. Shares closed up 1.6% in regular trading Wednesday at $48.45. Read: Cisco made it through a pandemic pothole, and the stock is driving higher For the fiscal third quarter, Cisco executives guided for adjusted earnings of 96 cents to 98 cents a share in adjusted profit and revenue of roughly $14.25 billion to $14.5 billion. Analysts were forecasting adjusted earnings of 89 cents and revenue of $13.58 billion, according to FactSet. Executives also sharply increased their revenue guidance for the fiscal year, now saying that they expect revenue growth of 9% to 10.5%, after stating 4.5% to 6.5% growth just three months ago. They also i …

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