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Cisco's Q4 Results and Analyst Perspectives

Published by MEXEM Technical Analysis

August 18, 2023 9:58 AM

Published - August 17th, 2023 @ 2:50 PM (GMT+2)

Cisco's Q4 Performance:

Cisco (NASDAQ:CSCO) recently announced its fiscal fourth-quarter outcomes, outperforming Wall Street's forecasts. The heightened demand was largely influenced by businesses' growing focus on AI, security, and cloud technologies.

Although Cisco's shares saw a brief decline in after-hours trading, they quickly recovered, registering a 3% uptick. This upward trend was credited to the management's focus on capturing a larger market share and the promising future of AI, as discussed in the earnings call.

Quarterly Financial Highlights:

In this quarter, Cisco recorded an adjusted EPS of $1.14, with total revenues reaching $15.2 billion. This surpassed the expected EPS of $1.06 and a revenue forecast of $15.05 billion. Notably, the company's product sales, a significant chunk of its total revenue, grew by 20% compared to the previous year, while its services saw a 4% growth.

Cisco's CEO and chair, Chuck Robbins, conveyed his pleasure with the company's achievements. He underscored the past year as pivotal for Cisco, marking record-breaking annual and Q4 results. Robbins accentuated Cisco's advancements in AI, security, and cloud domains and showed optimism for prospects.

Future Financial Projections:

Regarding future projections, Cisco expects its adjusted Q1 earnings to lie between $1.02 and $1.04, with revenue estimates between $14.5B and $14.7B. These figures are in sync with market predictions of an EPS of $0.99 and revenues of $14.6B. For 2024, Cisco's anticipated adjusted EPS ranges from $4.01 to $4.08, with revenue forecasts between $57.0B and $58.2B, slightly differing from analysts' expectations of an EPS of $4.04 and revenues of $58.4B.

Robbins, during the earnings discussion, shed light on Cisco's increased market presence in its top three networking sectors: campus switching, wireless LAN, and SP routing. He remains hopeful about further market expansions in the forthcoming periods.

BofA's Neutral Stance: 

While Robbins was bullish about Cisco's readiness for the AI wave, BofA analysts held a Neutral stance for Cisco, setting a share price target at $56. Their reservations stemmed from the FY24 revenue growth predictions, which were slightly conservative compared to market anticipations.

Similarly, Keybanc analysts held a neutral view, lauding Cisco's innovative strides and shift to more stable revenue streams. They praised Cisco's unwavering strong FCF and capital returns but hesitated about increasing the current P/E ratio without evident signs of consistent market gains.

To find more about Cisco's Q3 Earnings, Read More Here

The information on is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.


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