Cisco (CSCO) – Get Cisco Systems, Inc. Report shares on Wednesday dropped following the release of the company’s first-quarter results, which showed its quarterly revenue of $12.9 billion missed estimates of $12.98 billion.
The San Jose, Calif., tech giant reported net income of $3.5 billion, or 82 cents a share, which beat an average estimate of 80 cents a share from Refinitiv analysts for the first quarter ending Oct. 30.
Despite missing estimates, Cisco’s quarterly revenue and earnings per share were up 8% year-over-year.
The company’s second quarter guidance calls for 4.5% to 6.5% revenue growth year-over-year, with earnings of 80 cents to 82 cents a share. For fiscal year 2022, the company forecasts 5% to 7% revenue growth and earnings of $3.38 to $3.45 a share.
“In Q1, we had robust growth and continued strong demand despite the very dynamic supply environment,” Chuck Robbins, CEO of Cisco, said in a Wednesday statement. “Cisco’s technology sits at the heart of the accelerated digital transformation happening today. Our breakthrough innovation, strong demand, and the success of our business transformation position us well for another year of growth in fiscal 2022.”
Shares of Cisco fell 6% to $53.31 after hours. the stock had dipped by 0.4% in the regular session.
“Our teams executed well in a challenging environment, delivering balanced profitable growth with revenue and non-GAAP EPS both growing 8% year over year,” Scott Herren, CFO of Cisco, said in a statement. “We also continued to make significant progress in our business model transformation. Remaining performance obligations and annualized recurring revenue both grew 10% year-over-year with product ARR growth of 21% providing more predictability and visibility to our long-term growth.”