Cisco forecast eases tech spending fears, lifts shares | – #Cisco #forecast #eases #tech #spending #fears #lifts #shares
Feb 15 (Reuters) – Cisco Systems Inc ( CSCO.O ) on Wednesday raised its full-year earnings forecast and reported strong second-quarter results, suggesting spending on network infrastructure remained resilient in the face of an economic slowdown.
The maker of routers and other products that manage computer networks and the Internet said customers are steadying their investments in systems connected to the cloud, artificial intelligence and hybrid business tools.
The company is also benefiting from an easing of pandemic-driven supply chain constraints that plagued its business last year and resulted in significant inventory build-up.
“Cisco is in a better position today than it has been since I became CEO almost eight years ago,” Chuck Robbins said in a post-earnings analyst call. The company’s shares rose 3% after earlier jumping 12% in extended trading.
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Cisco for fiscal 2023, from 9% of revenue 10.5% growth and earnings per share of 3.73-3.78 dollars said that he made adjustments between It previously forecast revenue growth of 4.5% to 6.5% and earnings per share of 3.51 to 3.58 dollars predicted that it would happen.
Its second-quarter adjusted earnings per share of 88 cents and 13.59 billion dollar revenue was higher than market estimates compiled by Refinitiv.
“This is very strong growth and indicates that the company may finally be emerging from a difficult period of supply chain issues,” said Scott Raynovich, senior analyst at Futuriom.
Cisco said it reduced delays by 6% sequentially, while remaining, a metric that represents contract revenue to be recognized in the future execution obligations (RPO) on October 30.9 billion compared to the dollar january 31.8 by the end of the month billion dollars said he organized.
Cisco’s strong performance in response to economic headwinds USAIt comes at a time of cost-cutting and restructuring in the technology sector. Cisco announced in November that it was cutting about 5% of its workforce.
Reported by Yuvraj Malik in Bengaluru; Edited by Shailesh Kuber
Our standards: Thomson Reuters Trust Principles.
2023-02-16 12:13:14
Source – reuters
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