Cisco Lifts Its Forecast as Earnings Top Expectations, Despite Declining Revenue | Global News Avenue

Cisco Systems (China Association for Science and Technology) reported fiscal first-quarter profit that beat analysts’ expectations and raised its full-year forecast despite falling revenue.

The network equipment provider reported first-quarter net profit of $2.7 billion, or 68 cents a share, down from $3.6 billion, or 89 cents a share, a year earlier but above analysts’ forecasts. Cisco achieved revenue of $13.8 billion, down 6% year over year and broadly in line with analyst consensus compiled by Visible Alpha.

Cisco forecast second-quarter revenue of $13.75 billion to $13.95 billion, compared with expectations of $13.8 billion.

Cisco raises full-year outlook

The company raised its full-year revenue forecast to a range of $55.3 billion to $56.3 billion from the previous forecast of $55 billion. It also enhances its earnings per share It is expected to rise from $1.93 to $2.05 to $2.26 to $2.38.

Results are announced after Cisco About 7% of layoffs A quarter ago, as part of a shift into high-growth areas such as cybersecurity and AI. This follows a 5% layoff in February, affecting approximately 4,250 employees.

Cisco’s shares were little changed in extended trading Wednesday following the news. As of Wednesday’s close, 2024 shares were up more than 17%.