Cisco Systems Inc.’s stock slipped nearly 7% in extended trading Wednesday after the computer-networking company reported fiscal first-quarter results slightly above Wall Street estimates but offered tepid guidance.
Cisco CSCO,
Revenue climbed 8% to $12.9 billion, from $11.9 billion a year ago. Analysts surveyed by FactSet had expected earnings of 80 cents and revenue of $12.98 billion.
“In Q1, we had robust growth and continued strong demand despite the very dynamic supply environment,” Cisco Chief Executive Chuck Robbins said in a statement announcing the results.
The company expects 64 cents to 68 cents a share in profit, or 80 cents to 82 cents on an adjusted basis, in the fiscal second quarter. Analysts were forecasting 70 cents and 82 cents, respectively, according to FactSet.
Cisco, like most major tech component suppliers, is coping with supply chain issues that have partially offset strong enterprise sales. The conflicting dynamic was at the heart of many analysts’ notes heading into Monday’s repot.
Secure, Agile sales ($5.97 billion, up 10% year-over-year) and Services revenue ($3.4 billion, up 1%) led in revenue categories.
The quarter marked the first time Cisco broke out product and service revenue into seven new categories: Secure, Agile Networks; Hybrid Work; End-to-End Security; Internet for the Future; Optimized Application Experiences; Other Products; and Services.
Cisco’s stock is up 27% so far in 2021, while the Dow Jones Industrial Average DJIA,
