Cisco forecasts revenue under estimates, blames provide chain points By Reuters
© Reuters. FILE PHOTO: A customer makes use of a cell phone in entrance of the Cisco sales space on the Cellular World Congress in Barcelona, Spain, February 26, 2019. REUTERS/Rafael Marchante/File Picture GLOBAL BUSINESS WEEK AHEAD
(Reuters) -Cisco Techniques Inc on Wednesday cautioned that provide chain points will linger via the top of the calendar yr and forecast its current-quarter revenue under estimates, sending the shares of the community gear maker down 5%.
The warning comes at a time when all tech firms are dealing with a world chip scarcity.
“However what is going on on within the provide chain, our income information would have been greater, which might have in all probability flowed via to bettering EPS as effectively,” Chief Government Officer Charles Robbins stated throughout an earnings name.
Cisco (NASDAQ:) forecast fourth-quarter revenue to be between 81 cents and 83 cents per share, in contrast with estimates of 85 cents per share, and stated it expects a 6% to eight% progress in income.
For the third quarter ended Might 1, the corporate reported a 7% rise in income to $12.80 billion from a yr earlier, above analysts’ common estimate of $12.56 billion, based on IBES information from Refinitiv.
Cisco’s service income surged 8% and product income rose 6%, boosted by a sustained demand for its videoconferencing platform, digital personal community and cybersecurity merchandise as workplaces remained closed regardless of accelerated COVID-19 vaccinations.
Internet revenue rose to $2.86 billion, or 68 cents per share, from $2.77 billion, or 65 cents per share.
Excluding gadgets, Cisco earned 83 cents per share, above analysts’ estimates of 82 cents per share.
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