Cisco Systems presented the report for the 3rd quarter

On the premarket, Cisco Systems shares fell by 3.5%, but by 12:31 p.m., the quotation rose by 1.51% to $47.63. The company reported better-than-expected quarterly financial results.

As it became known to LBLV analysts, the profit per security amounted to 1 dollar, which exceeds the forecast of 0.97 dollars. Revenue increased by 14% year-on-year to $14.6 billion (against a forecast of $14.4 billion).

At the same time, it is reported that orders for products have decreased by 23% compared to the same period last year. Total revenue from software increased by 18%, and revenue from software subscriptions increased by 17%, compared to last year.

The ARR indicator (total annual recurring revenue) rose by 6%, compared to the value of 2022, to 23.8 billion dollars.

Cisco Systems CEO Chuck Robbins said that the company was able to achieve high results thanks to the development of key technologies, including artificial intelligence, security and cloud services.

In the fourth quarter, the company expects that the profit per share will be at the level of 1.05 to 1.07 dollars. Revenue is expected to increase by 14-16% year-on-year with sales of $15.07 billion.

The company improved its annual forecast. It is expected that the profit per share will be 3.80 – 3.82 dollars, compared with the previous value of 3.72 – 3.78 dollars. It is predicted that revenue will rise by 10-10.5%, LBLV reported.

Viktor Sokolov, financial analyst at LBLV

Source: Ministry of Finance

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