Cisco Systems, Inc. (CSCO), a worldwide leader in networking for the internet, has gained an increase of 3.50% in aftermarket trading session and as a result is trading at $56.15 at the time of the writing. During Wednesday’s regular trading session, the stock slightly decreased by 0.037% during the day and closed at $54.25. The increase in aftermarket could be attributed to the earnings announcement.
CSCO Reported Q2 2022 Results
On Wednesday, CSCO announced the earnings results for the second quarter of the fiscal year 2022. The quarter came to an end on 29th January 2022. The revenue generated during the quarter was $12.7 billion, an increase of 6% on a year-over-year basis. The GAAP EPS during Q2 2022 was $0.71, after 18% on a year-over-year basis, while the non-GAAP EPS was $0.84 after increasing 6% on a year-over-year basis. The dividend saw an increase of 3% while an additional $15 billion were authorized by the company for the repurchase of the stock.
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Financial Guidance
CSCO also reported the guidance for the upcoming quarter as well as for the fiscal year 2022. The revenue is expected to grow 3% to 5% on a year-over-year basis. The GAAP EPS is expected to remain in the range of $0.70 and $0.74, while the non-GAAP EPS is expected to remain in the range of $0.85 to $0.87. For the fiscal year 2022, the company expects revenue growth in a range of 5.5% to 6.5% on a year-over-year basis. The GAAP EPS for fiscal 2022 is expected to lies between $2.83 and $2.92, while non-GAAP EPS is expected to remain in a range of $3.41 to $3.46 for fiscal 2022.
Executive Commentary
Chuck Robbins, chair and CEO of CSCO, while commenting on the development said that the company has seen a tremendous demand across its portfolio during the quarter which is evident from the criticality of the company’s innovative strategies. The robust growth and record backlog of the company places it in an excellent place to deliver outstanding results in quarters to come.
Future Outlook for CSCO
Looking ahead, the analysts believe that even though CSCO stock holds several negative signals at this point, there is a fair chance for a turnaround situation coming up soon. Hence, the stock should be considered as a hold candidate while waiting for further developments.
