Cisco Systems, Inc. CSCO initially traded higher before turning negative Thursday on the heels of the company’s fiscal third-quarter earnings.
What Happened: Cisco reported financial results for the third quarter after the market close on Wednesday, including $12.7 billion in revenue, down 13% year-over-year. The number beat analyst estimates of $12.531 billion, according to Benzinga Pro.
The company reported adjusted EPS of 88 cents, down 12% year-over-year. The number beat analyst estimates of 82 cents.
The company also provided guidance for the fourth quarter. Cisco expects revenue to be between $13.4 billion and $13.6 billion versus estimates of $13.23 billion. In addition, the company expects EPS to be between 84 cents and 86 cents versus estimates of 85 cents.
The company expects full-year 2024 revenue to be between $53.6 billion to $53.8 billion versus estimates of $53.14 billion. Cisco also guided for adjusted EPS of $3.69 to $3.71 versus estimates of $3.67.
“We delivered a solid Q3 performance in what remains a dynamic environment” said Chuck Robbins, chair and CEO of Cisco. “Our unique ability to bring together networking, security, observability, and data enables Cisco to offer our customers unrivaled digital resilience for the AI era.”
Cisco also named Gary Steele president of Go-to-Market, effective immediately. Steele is well known for his operational excellence, and in this new role, he will work closely with Robbins to set and execute against Cisco’s strategic plans and goals. Jeff Sharritts, Cisco’s chief customer and partner officer, will depart Cisco after a 24-year career at the company.
On Thursday, Oppenheimer analyst Ittai Kidron maintained Cisco with an Outperform and raised the price target from $54 to $58. Piper Sandler analyst James Fish reiterated Cisco with a Neutral and raised the price target from $51 to $52. Wells Fargo maintained an Equal-Weight rating and lifted the price target from $52 to $57 and Needham reiterated its Hold rating.
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CSCO Price Action: At the time of publication, Cisco shares were down 1.7% at $48.83, according to Benzinga Pro.
Image: 8714005 from Pixabay.
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