Shares of technology company Cisco Systems, Inc. (CSCO) fell 1.9% in Wednesday’s extended trade to close at $54.10 despite the company’s stronger-than-expected results for the fiscal fourth quarter ended July 31, 2021. The robust results were primarily driven by growth in revenues.
Quarterly revenues stood at $13.1 billion, up 8% from the year-ago quarter, and surpassed the Street’s estimate of $13.03 billion. Revenues from Product and Service segments grew 10% and 2.6% year-over-year, respectively, aiding the overall growth in revenues.
The company reported quarterly earnings per share (EPS) of $0.84, up 5% from last year. Further, the figure surpassed the consensus estimates of $0.82 per share.
Notably, the company expects revenues to be in the range of 7.5% to 9.5% in the first quarter and between 5% and 7% for Fiscal Year 2022.
It anticipates EPS to be in the range of $0.79 to $0.81 for Q1 and between $3.38 and $3.45 for Fiscal Year 2022. Analysts expect the company to report earnings of $0.81 per share in the first quarter and $3.40 per share for Fiscal Year 2022.
The CEO of Cisco, Chuck Robbins, said, “The demand for Cisco technology is strong with our Q4 performance marking the highest product order growth in over a decade. With the power of our portfolio, we are well-positioned to help our customers accelerate their digital transformation and thrive in a hybrid world.” (See Cisco stock chart on TipRanks)
Recently, Morgan Stanley analyst Meta Marshall reiterated a Buy rating on the stock with a price target of $57, which implies 3.4% upside potential from current levels.
According to the analyst, the demand for the company’s products remained strong, which bodes well for the company. However, supply chain constraints can act as a headwind for the company.
The stock has a Moderate Buy consensus rating based on 8 Buys and 6 Holds. The average Cisco price target of $54.77 implies downside potential of 0.7% from current levels.
Cisco scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 31.7% over the past year.
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