Cisco Systems Inc. (CSCO) on Wednesday reported an increase in profit for the fourth quarter, as revenues rose 8% despite supply chain constraints impacting the industry. Both earnings and revenues for the quarter trumped estimates. However, Cisco stock slipped 1.5% in extended session after the company issued a guidance that disappointed investors.
San Jose, California-based Cisco System’s fourth-quarter profit rose to $3.01 billion or $0.71 per share from $2.64 billion or $0.62 per share last year.
On an adjusted basis, earnings for the quarter were $3.55 billion or $0.84 per share for the period, compared to $3.39 billion or $0.80 per share a year ago. Analysts had expected the company to earn $0.82 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.
Cisco said its revenues for the quarter grew 8.1% to $13.13 billion from $12.15 billion last year. Analysts had a consensus revenue estimate of $13.03 billion for the quarter. The company reported product revenue growth of 10% and service revenue increase of 3%.
“We continue to see great momentum in our business as customers are looking to modernize their organizations for agility and resiliency,” said CEO Chuck Robbins. “The demand for Cisco technology is strong with our Q4 performance marking the highest product order growth in over a decade. With the power of our portfolio, we are well positioned to help our customers accelerate their digital transformation and thrive in a hybrid world.”
Looking forward to the first quarter, Cisco expects adjusted earnings of $0.79 to $0.81 per share and revenue growth of 7.5% to 9.5%. Analysts currently estimate earnings of $0.81 per share.
For the full year 2021, the company expects adjusted earnings of $3.38 to $3.45 per share and revenues of 5% to 7%. Analysts currently estimate earnings of $3.40 per share on revenue growth of 4.40%.
CSCO closed Wednesday’s trading at $55.15, down $0.86 or 1.54%, on the Nasdaq. The stock further slipped $0.86 or 1.56% in the after-hours trade.
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