Cisco Raises Fiscal Year Profit Guidance Following 1Q Results -- Earnings Review

   By Maria Armental 
 

Cisco Systems Inc. raised its profit projection for the year following a roughly 37% profit improvement in the most recent quarter. Here's what you need to know:

PROFIT: Net income for the October quarter rose to $2.98 billion from $2.17 billion a year earlier. On a per-share basis, profit was 70 cents, or 82 cents as adjusted. Cisco has projected 61 cents to 66 cents a share, or 79 cents to 81 cents as adjusted; and analysts surveyed by FactSet expected 71 cents a share, or 80 cents a share on an adjusted basis.

REVENUE: Revenue rose about 8% to $12.9 billion, compared with Cisco's projected 7.5% to 9.5% increase and analysts' expected $12.98 billion.

OUTLOOK: Cisco raised its profit projections for the year, saying it now expects $2.77 to $2.89 a share, up from its previous view of $2.72 to $2.84 a share. It affirmed its adjusted profit view of $3.38 to $3.45 a share and 5% to 7% in revenue growth.

CFO QUOTE: "Our teams executed well in a challenging environment, delivering balanced profitable growth with revenue and non-GAAP EPS both growing 8% year over year," Chief Financial Officer Scott Herren said in a statement. "We also continued to make significant progress in our business model transformation. Remaining performance obligations and annualized recurring revenue both grew 10% year over year with product ARR growth of 21% providing more predictability and visibility to our long-term growth."

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

November 17, 2021 16:34 ET (21:34 GMT)

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