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Cisco returns to growth but disappoints on earnings guidance

Mount Equity Group Tokyo, Japan > News > Tech > Cisco returns to growth but disappoints on earnings guidance

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CSCOIn this image released on May 2, 2021, from left, Cisco CEO Chuck Robbins and Chief Public Affairs, Communications and Sustainability Officer of Coca-Cola Company Bea Perez speak onstage during Global Citizen VAX LIVE: The Concert To Reunite The World at SoFi Stadium in Inglewood, California.Kevin Winter | Getty Images

Cisco shares fell 6% in extended trading on Wednesday after the data center networking hardware maker said it expects this quarter’s earnings to be lower than analysts had expected. The company revealed the news in its earnings report for the quarter ended May 1, its fiscal third quarter.

Here’s how the company did:

Earnings: 83 cents per share, adjusted, vs. 82 cents per share as expected by analysts, according to Refinitiv.Revenue: $12.80 billion, vs. $12.56 billion as expected by analysts, according to Refinitiv.

Cisco reversed a five-quarter streak of revenue declines, posting nearly 7% growth year over year, although the quarter included 14 weeks, rather than 14 in the year-ago quarter.

With respect to guidance, Cisco said it sees 81 cents to 83 cents in adjusted earnings per share and 6% to 8% revenue growth in the fiscal fourth quarter. Analysts had expected 85 cents in adjusted earnings per share and $12.82 billion