Cisco CEO Chuck Robbins participates at the World Economic Forum in Davos, Switzerland, on Jan. 18, 2023.
Hollie Adams | Bloomberg | Getty Images
Cisco shares popped in extended trading on Wednesday after the networking company reported quarterly results that topped analysts’ estimates.
Here are the key numbers:
- Earnings: 87 cents per share, adjusted, vs. 85 cents per share estimate, adjusted, according to LSEG.
- Revenue: $13.64 billion vs. $13.54 billion estimate, according to LSEG.
Sales fell 10% in the fiscal fourth quarter from $15.2 billion a year earlier, Cisco said in a press release. It’s the third straight quarterly drop in revenue and the first time the company has reported a decline for a full fiscal year since 2020.
The slide is projected to last for one more period. For the first quarter, Cisco said it expects revenue of $13.65 billion to $13.85 billion, down from $14.7 billion in the prior year. Analysts were expecting $13.7 billion, according to LSEG.
Cisco said in previous quarters that the revenue slippage stemmed from certain clients setting up equipment that they’d received in previous periods.
Cisco’s core networking business, which includes switches and routers, has been in decline since large enterprises started moving to the cloud years ago. The company has bolstered its software and securities business to diversify and bring in more recurring subscription revenue. In March, it closed the $28 billion acquisition of Splunk, by far its largest deal ever, picking up data analysis and security technology.
Shares of Cisco were down 10% this year, prior to the close, while the Nasdaq was up about 14%.
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