Shares of Cisco Systems Inc (NASDAQ: CSCO) lost nearly 4.0% in extended hours even though the multinational reported market-beating results for its third financial quarter as supply constraints continued to ease.
Cisco stock down on orders decline
The tech stock is taking a hit on orders that declined 23% in the recently concluded quarter. Still, CEO Chuck Robbins said in the earnings release:
Given unprecedented demand for our tech during the pandemic, sequential order rates are more informative than year-over-year rates. Our sequentials in Q3 were in general alignment with historical ranges.
On the plus side, though, Cisco raised its full-year guidance on Wednesday. It’s now calling for $3.80 to $3.82 of adjusted per-share earnings on 10% to 10.5% annualised growth in revenue. According to Cerity Partners’ Jim Lebenthal:
This [Cisco] is the ultimate steady Eddie. I’ve owned this for ten years. From price perspective, it matches the S&P 500. You have the dividend on top. I really like this for the long term.
Cisco Q3 earnings highlightsEarned $3.2 billion versus the year-ago $3.0 billion Per-share earnings climbed from 73 cents to 78 cents Adjusted EPS printed at $1.0 as per the press release Revenue went up 14% year-on-year to $14.57 billion Consensus was 97 cents a share on $14.4 billion revenue
Cisco brought in $11.1 billion in revenue from its “Product” segment and $3.5 billion from “Services” – both up versus last year and ahead of Street estimates. Its board authorised a quarterly per-share dividend of 39 cents on Wednesday.
Cisco stock is now roughly flat for the year.
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