Cisco revenue (CSCO) for the third quarter of 2022

Shares of Cisco fell as much as 17% in expanded trading on Wednesday after the network company said it received lower quarterly revenue than analysts had predicted, and called for an unexpected drop in sales in the current period.

Here’s how the company did:

• Income: 87 cents a share, adjusted against 86 cents a share, analysts had expected, according to Refinitiv.
• Income: According to Refinitiv, $ 12.84 billion versus $ 13.34 billion, analysts had expected.

According to the statement, Cisco’s revenue for the quarter ended April 30 was about the same as last year. Net income of $ 3.04 billion was up 6%. Revenue rose 6% in the previous quarter.

The Covid blockade in China and the war between Russia and Ukraine weakened Cisco’s revenue for the quarter, CEO Chuck Robbins said in a statement. The war cut revenue by about $ 200 million and added $ 5 million to Cisco’s quarterly sales and $ 62 million in operating expenses, the statement said.

Meanwhile, the blockade has exacerbated component shortages, Robbins said during a conference with analysts.

In the fourth fiscal quarter, Cisco demanded between 76 cents and 84 cents of adjusted earnings per share and a decrease in revenue over the same period last year by 1% to 5.5%. Analysts polled by Refinitiv expected earnings of 92 cents a share on revenue of $ 13.87 billion, or about 6% growth. The guidance range is wider than usual because of the increasingly complex environment, Robbins said.

“We believe that our revenues in the coming quarters are less dependent on demand and more dependent on the availability of supplies in this increasingly complex environment,” he said.

Other network providers collapsed after the Cisco results. Arista Networks fell 6%, Juniper fell 10%, Ciena fell about 9% and F5 fell more than 3% after closing regular trading.

Cisco said its Secure segment, Agile Networks, which includes data center network switches, generated revenue of $ 5.87 billion. That’s 4% growth, and that’s lower than the consensus of $ 6.09 billion among analysts polled by StreetAccount.

The Cisco Internet for the Future division, which includes routing optical network hardware that the company acquired as a result of its acquisition of Acacia Communications in 2021, contributed $ 1.32 billion, up 6%, and below the StreetAccount consensus by $ 1.44 billion. dollars.

The Collaboration segment, which includes Webex collaboration software, generated revenue of $ 1.13 billion, down 7% and according to the StreetAccount consensus of $ 1.13 billion.

As of closing, Cisco shares have accounted for 23% since the beginning of the year, while the S&P 500 has declined by about 18% over the same period. If shares fall more than 16.2% on Thursday, it will be the sharpest decline in the day after falling 17.7% in July 1994 and the third-largest ever.

– Ari Levy from CNBC contributed to this report.

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