Financial Planning Experts

Breaking Financial News and Information
Menu
  • Entrepreneurs
  • World Finance
  • Breaking News
  • Markets
  • Real Estate
  • Privacy Policy
  • Contact Us

Cisco (CSCO) earnings Q2 2022

Bill Muskegy February 17, 2022

Cisco shares rose as much as 5% in extended trading on Wednesday after the enterprise software and hardware maker disclosed fiscal second-quarter earnings that surpassed analysts’ expectations.

Here’s how the company did:

  • Earnings: 84 cents per share, adjusted, vs. 81 cents per share as expected by analysts, according to Refinitiv.
  • Revenue: $12.70 billion, vs. $12.65 billion as expected by analysts, according to Refinitiv.

Revenue increased by 6% year over year in the quarter, which ended Jan. 29, according to a statement. In the previous quarter revenue had risen 8%.

“There are still significant constraints with semiconductors, preventing us from completing manufacturing of some of our products, and that remains a headwind to revenue growth despite very strong demand,” Cisco CEO Chuck Robbins said on a conference call with analysts. He said he isn’t sure when components would become more readily available.

New Spending Bill Makes It Easier for Americans to Save for Retirement
Read moreNew Spending Bill Makes It Easier for Americans to Save for Retirement

Cisco CEO Chuck Robbins

Pradeep Gaur | Mint | Getty Images

As Cisco pays to secure alternative sources of components and speed up shipping, the company is raising product prices, a move that executives said should boost results toward the end of the current quarter and in the fiscal fourth quarter.

Cisco’s Secure, Agile Networks segment, which includes data-center networking switches, generated $5.90 billion in revenue. That was up 7% and more than the $5.78 billion sum that analysts polled by StreetAccount had predicted.

The company’s Internet for the Future segment, which contains routed optical networking, public 5G, silicon and optics products, contributed $1.32 billion, up 42% and just above the StreetAccount consensus of $1.30 billion.

Cisco’s Hybrid Work segment that features Webex collaboration offerings posted $1.07 billion in revenue, down 9% and slightly lower than the $1.10 billion StreetAccount consensus. The segment’s name is changing to Collaboration this quarter, Cisco’s finance chief, Scott Herren, said.

With respect to guidance, Cisco called for 85 cents to 87 cents in adjusted fiscal third-quarter earnings per share on 3% to 5% revenue growth. Analysts polled by Refinitiv had expected 86 cents in adjusted earnings per share and $13.25 billion in revenue, which implies 3.5% growth.

For the 2022 fiscal year, Cisco said it sees $3.41 to $3.46 in adjusted earnings per share and 5.5% to 6.5% revenue growth. Analysts polled by Refinitiv had been looking for adjusted earnings of $3.42 per share and $52.71 billion in revenue, or 5.8% growth.

Last week news outlets reported that Cisco had made a bid for data-analytics software company Splunk. One analyst asked about the reports, and Robbins wouldn’t talk specifically about any plans related to Splunk, although he did comment generally on Cisco’s approach to doing deals.

“First of all we don’t comment on rumors and speculations or stories. But what I will tell you is that we are constantly evaluating potential opportunities,” Robbins said. “Scott and I were talking and we think every deal we do we probably look at 10 to 15 companies. We base our decisions on first and foremost strategic fit, secondly cultural fit, and equally as important, the financial and valuation fit.”

Splunk stock moved about 0.6% lower in extended trading after the comments.

Shares of Cisco have declined 14% since the start of 2022, while the S&P 500 index has fallen roughly 6% over the same period.

WATCH: Shares of Cisco up 12% since December 1st

Prev Article
Next Article

Related Articles

You Still Have Time to Ask Colleges for More Financial Aid
DeRionne Pollard, president of Montgomery Faculty, a 3-campus local community …

You Still Have Time to Ask Colleges for More Financial Aid

BP posts $3.3 billion third-quarter profit, beating estimates as oil prices surge
Oil and fuel large BP defeat 3rd-quarter earnings anticipations on …

BP posts $3.3 billion third-quarter profit, beating estimates as oil prices surge

About The Author

Bill Muskegy



Recent Posts

  • Lcc Credit Card
  • Credit Card Affin Bank
  • Credit Card Junior
  • Hh Credit Card
  • Dwr Credit Card

Financial Planning Experts

Breaking Financial News and Information
Copyright © 2023 Financial Planning Experts
Theme by Financial Planning

Ad Blocker Detected

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

Refresh