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Cisco Systems (CSCO) issued a weaker-than-expected revenue outlook for fiscal 2024 while fiscal fourth-quarter earnings topped estimates. CSCO stock fell on the news.
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For the period that ended July 29, Cisco earnings rose 37% to 1.14 per share. Revenue climbed 16% to $15.2 billion.
Analysts estimated that Cisco would earn $1.06 per share on revenue of $15.05 billion, according to FactSet.
Cisco stock dropped 1.6% to 52.14 in extended trading on the stock market today. The computer networking giant reported earnings after the market close.
Cisco Stock: Revenue Outlook
For fiscal 2024, Cisco said it expects sales of $57.6 billion at the mid-point of its outlook, up about 1% year over year. Analysts had predicted 2.7% sales growth to $58.38 billion.
Cisco forecast earnings in a range of $4.01 to $4.08 a share vs. analyst estimates of $4.05 a share. That forecast is up 6% from fiscal 2023.
Cisco’s product order growth has turned negative. Capital spending by cloud computing and telecom customers is expected to slow in 2024. But corporate and government spending could be bright spots.
Heading into the Cisco earnings report, the company owned a Relative Strength Rating of 86 out of a best-possible 99, according to IBD Stock Checkup. CSCO stock had advanced 12% in 2023.
In addition, CSCO stock has shifted away from its core business of selling network switches and routers. With acquisitions, Cisco aims to increase revenue from software and services.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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