Cisco Systems Is 'A Shelter In The Storm': 5 Analysts Deep Dive Into FQ4 Print

Shares of Cisco Systems Inc CSCO were rising on Thursday, after the company reported higher-than-expected revenues and earnings for its fiscal fourth quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

Morgan Stanley On Cisco Systems

Analyst Meta Marshall maintained an Equal-Weight rating while raising the price target from $55 to $56.

After a volatile earnings season in networking, Cisco Systems’ fiscal fourth quarter results were “a pleasant surprise,” Marshall said in a note.

Although the Cisco Live event highlighted a lack of traction with its refreshed security portfolio, the company “continues to be a shelter in the storm, able to deliver upon results and outlook given more diversified customer base than most networking companies (1mm+ customers and partners),” he added.

Needham On Cisco Systems

Analyst Alex Henderson reiterated a Hold rating on the stock.

Cisco Systems’ backlogs have depleted faster than expected and “is now expected to be largely completed in FY1Q,” Henderson said.

“Virtually all of FY24's earnings growth is expected in FY1Q, the quarter during which CSCO's backlog is expected to run off,” the analyst wrote. “We expect little to no growth after the backlog is consumed and forecast y/y quarterly EPS declines in FY2H,” he added.

Check out other analyst stock ratings.

Oppenheimer On Cisco Systems

Analyst Ittai Kidron reaffirmed an Outperform rating and price target of $58.

Cisco Systems reported solid quarterly results, driven by “stable demand and easing input costs,” Kidron wrote.

“The company delivered strong product growth (+20.4% YoY) as it continues to fulfill its substantial backlog, with particular strength in Secure Agile Networking (+33% YoY),” the analyst stated. “The results were balanced by a FY24 revenue guide that missed estimates as the COVID-related backlog normalizes,” he added.

KeyBanc Capital Markets On Cisco Systems

Analyst Thomas Blakey maintained a Sector Weight rating on the stock.

“Orders rebounded over 30% sequentially but were still down 14% y/y (vs. -6% compare in F4Q22),” Blakey wrote in a note.

“Cisco commentary was positive on stabilizing conditions including that its internal sales forecasts beat in July by several hundred million dollars,” he added. “The Company appeared confident on Ethernet-based AI (Silicon One) opportunities, highlighting $500M in AI orders to date, but sees demand inflection more likely in FY25, similar to peers,” the analyst further stated.

JMP Capital Markets On Cisco Systems

Analyst Erik Suppiger reiterated a Market Perform rating on the stock.

“F4Q23 order growth of (14%) Y/Y was an improvement from the (20%)+ growth in the past two quarters,” Suppiger said.

“Cisco’s transition into more of a software company was relatively robust, with software growth of 17% in F4Q23, and software subscription sales growth of 20% Y/Y,” he added.

CSCO Price Action: Shares of Cisco Systems had risen by 4.66% to $55.43 at the time of publication Thursday.

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