Chuck
Robbins,
chief
executive
officer
of
Cisco,
participates
in
a
Bloomberg
interview
at
the
World
Economic
Forum
in
Davos,
Switzerland,
on
Jan.
17,
2024.
Stefan
Wermuth
|
Bloomberg
|
Getty
Images
Cisco
reported
earnings
and
revenue
for
the
fiscal
third
quarter
that
topped
Wall
Street’s
estimates,
even
with
sales
dropping
from
a
year
earlier.
The
stock
rose
as
much
as
8%
in
extended
trading.
Here’s
how
the
company
did
in
comparison
with
LSEG
consensus:
-
Earnings
per
share:
88
cents
adjusted
vs.
82
cents
expected -
Revenue:
$12.7
billion
vs.
$12.53
billion
expected
Cisco’s
revenue
declined
by
about
13%
year
over
year
in
the
quarter,
which
ended
on
April
27,
according
to
a
statement.
That’s
the
steepest
slide
since
2009.
Net
income
fell
41%
to
$1.89
billion,
or
46
cents
per
share,
from
$3.21
billion,
or
78
cents
per
share,
a
year
earlier.
The
weakening
performance
stems
from
clients
setting
up
the
equipment
they
received
in
recent
quarters,
according
to
the
statement.
Cisco
offered
similar
commentary
in
its
previous
earnings
report.
“We
currently
expect
customers
to
complete
the
installation
of
the
majority
of
their
inventory
by
the
end
of
our
fiscal
year
in
July,”
Cisco
CEO
Chuck
Robbins
said
on
a
conference
call
with
analysts.
He
said
he
was
happy
Cisco
is
approaching
the
end
of
supply
chain
challenges
it
has
faced
for
years.
Cisco’s
public
sector
business
was
weaker
in
the
U.S.
than
in
other
regions.
“We
believe
this
has
since
cleared
with
the
subsequent
signing
of
the
most
recent
U.S.
federal
government
funding,”
Robbins
said.
Networking
revenue,
at
$6.52
billion,
slipped
27%.
The
category,
which
includes
data
center
switches,
continues
to
represent
a
majority
of
overall
revenue.
During
the
quarter,
Cisco
completed
its
$28
billion
acquisition
of
security
software
maker
Splunk.
The
deal
lowered
Cisco’s
adjusted
earnings
per
share
by
a
penny
but
provided
$413
million
in
additional
revenue.
“Upon
closing
the
deal,
we
identified
5,000
existing
Cisco
customers
who
have
the
potential
to
become
meaningful
Splunk
customers
and
our
sales
teams
are
already
making
those
connections,”
Robbins
said.
Cisco
will
be
able
to
reduce
costs
over
time,
finance
chief
Scott
Herren
said.
Cisco
bumped
up
its
fiscal
2024
revenue
guidance
to
a
range
of
$53.6
billion
to
$53.8
billion,
from
$51.5
billion
to
$52.5 billion
in
February.
Analysts
polled
by
LSEG
had
expected
$53.14
billion.
The
company
narrowed
its
full-year
adjusted
earnings
forecast.
It’s
now
$3.69
to
$3.71,
compared
with
$3.68
to
$3.74
in
February.
The
LSEG
consensus
was
$3.67.
Herren
called
for
fiscal
2025
revenue
growth
in
the
low-
to
mid-single
digits.
Prior
to
Wednesday’s
announcement,
shares
were
down
2%
in
2024,
while
the
S&P
500
index
was
up
11%.
Cisco
said
Gary
Steele,
who
had
been
Splunk’s
CEO,
is
becoming
the
parent
company’s
president
of
go
to
market,
effective
immediately.
Steele
will
continue
to
run
Splunk,
Herren
told
CNBC
in
an
interview.
Jeff
Sharritts,
Cisco’s
chief
customer
and
partner
officer,
will
leave.
Sharritts’
organization
will
now
report
to
Steele,
along
with
marketing
chief
Carrie
Palin,
Herren
said.
WATCH:
Cisco
CEO
Chuck
Robbins:
$28
billion
Splunk
deal
will
be
a
significant
financial
growth
driver

watch
now