Cisco Systems Inc.’s banal was initially level successful extended trading Wednesday aft the computer-networking institution reported fiscal fourth-quarter results somewhat supra Wall Street estimates.
The institution CSCO, -1.54% reported net income of $3 billion, oregon 71 cents a share, compared with nett income of $2.6 billion, oregon 62 cents a share, successful the year-ago quarter. The company’s adjusted nett income was $3.6 million, oregon 84 cents a share.
Revenue roseate 8% to $13.1 billion, from $12.15 cardinal a twelvemonth ago.
“We proceed to spot large momentum successful our concern arsenic customers are looking to modernize their organizations for agility and resiliency,” Cisco Chief Executive Chuck Robbins said successful a statement announcing the results. He said merchandise bid maturation of 31% was the champion year-over-year successful much than a decade.
Quarterly merchandise income ($9.72 billion) and work gross ($3.4 billion) recorded year-over-year gains portion Cisco reported minimal restructuring costs, allaying the concerns of immoderate investors and employees.
Analysts surveyed by FactSet had expected net of 83 cents and gross of $13 billion.
As is usually the lawsuit with fourth-quarter results, murmurs of layoffs picked up successful caller days, portion of what 1 erstwhile Cisco worker sardonically referred to arsenic the company’s “summer tradition” of unit cutbacks aft dense M&A enactment and the extremity of the fiscal year.
In the aforesaid 4th a twelvemonth ago, for example, Cisco announced CFO Kelly Kramer was retiring and said it would acquisition a $1 cardinal outgo simplification “over the adjacent fewer quarters” by “rebalancing its R&D investments” connected respective areas that included unreality information and automation successful the enterprise.
But that didn’t hap this quarter, arsenic Cisco — a bellwether for tech hardware request successful the manufacture — reported astir $50 cardinal successful fiscal-year gross and offered first-quarter gross maturation guidance of betwixt 7.5% and 9.5% — up of analysts’ projections of 7.5%.
The institution expects 61 cents to 66 cents a stock successful Q1 profit, oregon 79 cents to 81 cents connected an adjusted basis. Analysts are forecasting 67 cents and 81 cents, respectively.
Cisco’s banal is up 23% truthful acold successful 2021. The broader S&P 500 index SPX, -1.07% has gained 17% this year.