Cisco (NASDAQ:CSCO) issued fiscal fourth-quarter results on Wednesday that topped analysts’ projections and provided a better-than-expected forecast for the coming year.
Earnings checked in at 83 cents per share, adjusted, vs. 82 cents per share as expected by analysts.
Revenue proved to be $13.10 billion, vs. $12.79 billion as expected by analysts.
Revenue declined slightly in the quarter, which ended July 30, according to a statement. Net income decreased by 6% to $2.82 billion as the company’s adjusted gross margin narrowed to 63.3% from 65.3% in the previous quarter. Analysts had predicted 64.7%.
For the 2023 fiscal year, Cisco called for adjusted earnings per share of $3.49 to $3.56 and 4% to 6% revenue growth. Analysts polled had expected adjusted earnings of $3.53 per share, with revenue of $52.79 billion, or growth of 2.3%. In the 2022 fiscal year, revenue increased by 3.4%.
While Cisco’s numbers generally topped estimates, the company is still struggling to grow as the technology world rapidly shifts to cloud and subscription software and away from buying physical boxes. The company’s stock price is down 24% this year, while the Nasdaq has fallen 17%.
Cisco’s top business segment, Secure, Agile Networks, which includes data-center networking switches, delivered 46% of total revenue at $6.09 billion, down 1% from a year earlier but above the $5.86 billion consensus from analysts.
CSCO shares galloped $2.71, or 5.8%, to $49.38.