Cisco systems (CSCO) on Wednesday announced fiscal third-quarter earnings and revenue that exceeded estimates. Meanwhile, the company’s outlook for the fourth quarter of the fiscal year was affected by opinions. CSCO stock fell.
For the period ended April 30, Cisco’s earnings were $1 per share, up 15% from a year earlier, the company said. Revenue was $14.6 billion, up 14%, including acquisitions. Analysts had expected Cisco earnings of 97 cents per share on sales of $14.39 billion.
A year ago, Cisco’s earnings were 87 cents a share on sales of $12.83 billion.
The tech giant announced the results after the market closed on Wednesday. CSCO stock fell 4% to 45.72 during extended trading in the stock market today.
CSCO Stock: Fourth Quarter Outlook
Cisco did not include product order growth in its earnings release. Orders growth fell 22% in the January quarter after rising for most of calendar 2022.
For the current period ending in July — the fourth fiscal quarter — the company is expecting earnings of $1.06 per share versus estimates of $1.04 per share.
Meanwhile, Cisco said it expects revenue to grow 15% versus a 14% growth forecast to $14.95 billion.
As Cisco’s earnings report approaches, the technology stock is down nearly 2% in 2023. CSCO stock has a relative strength rating of 63 out of a possible 99, according to IBD stock check.
Cisco 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 @employee For updates on 5G wireless networks, artificial intelligence, cybersecurity, and cloud computing.
You may also like:
IBD Digital: Unlock IBD blue-chip stock listings, tools and analytics today
Learn how to time the market with IBD’s ETF market strategy
Get free newsletters from IBD: Market Prep | Technical report | how to invest
IBD Live: A new tool for daily analysis of the stock market
“Beer aficionado. Gamer. Alcohol fanatic. Evil food trailblazer. Avid bacon maven.”