Cisco boosts full-year guidance, sees demand stabilizing

Cisco (CSCO) reported its third quarter results after the market close on Wednesday. The company reported adjusted earnings of $0.88 per share, which was better than the estimated $0.82. Revenue of $12.70 billion was slightly better than estimates.

The tech giant also raised its full-year forecast. Cisco projects full-year revenue of $53.6 billion to $53.8 billion, compared to the prior guidance of $51.5 billion to $52.5 billion. It sees adjusted earnings per share of $3.69 to $3.71 versus the previous estimate of $3.68 to $3.74.

In the release, Cisco CFO Scott Herren says the company is seeing a "stabilization of demand" as "customers are consuming the equipment shipped over the last few quarters."

Yahoo Finance's Julie Hyman and Josh Lipton break down Cisco's Q3 results.

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This post was written by Stephanie Mikulich.

Video transcript

And now we gotta get to Cisco numbers, which have just come out in the past few moments.

The company is raising its full year forecast, so I want to get to that first revenue now seen at 53.6 to $53.8 billion.

Um, it had been 51.5 to $52.5 billion a pretty significant increase in that forecast here.

And if you look at uh, the company's numbers that it reported looking backwards last quarter, you see them there, the company beating by six cents a share.

On the bottom line.

Revenue did fall year over year by 13% but it did come in a little bit ahead of what analysts had been anticipating.

And the Cisco shares are rising some 5% in after hours trading.

The stock, by the way, is down almost 2% year to date.

Going into these numbers here, I'm going to go through and take a look at the individual units as well to see what we're getting here.

Networking revenue.

It looks like ahead of estimates.

Security revenue.

$1.3 billion ahead of estimates and collaboration revenue.

Also, uh, that went a little bit short of me.

Estimates network is by far the largest part of the business here.

The company has been integrating its acquisition of Splunk.

Um, and the former CEO of that company was named the president of Go to Market Inside of Cisco here.

Yeah.

I mean, heading into this print.

As you noted, Julian, expectations were low.

I mean, you today.

The stock had got nowhere.

It was actually edging lower.

As you pointed out, I think plenty of questions for CEO Chuck Robbins about enterprise orders about A I orders, you know, when does that start showing up as a real benefit to the company inventory levels?

Um, you know, are we close to getting kind of right size there and and then to your point, Splunk and that acquisition?

What is kind of Chuck Robbins saying in the call about any kind of potential kind of sales synergies?

Uh, between those two?

Yeah.

And just one thing to point out from Scott Heron, the CFO, who made a comment in the statement saying customers are consuming the equipment shipped over the last few quarters in line with our expectations, he says.

We are seeing stabilisation of demand as a result, and that is what people want.

Well, they ideally, they want an uptick in demand.

Well, investors, you know, listen for this thing, they'll take stabilisation, that pop.