Published - August 17th, 2023 @ 2:50 PM (GMT+2)

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Cisco's Q4 Performance:
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‍Cisco (NASDAQ:CSCO) recently announced its fiscal fourth-quarter outcomes, outperforming Wall Street's forecasts. The heightened demand was largely influenced by businesses' growing focus on AI, security, and cloud technologies.

Although Cisco's shares saw a brief decline in after-hours trading, they quickly recovered, registering a 3% uptick. This upward trend was credited to the management's focus on capturing a larger market share and the promising future of AI, as discussed in the earnings call.
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Quarterly Financial Highlights:
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In this quarter, Cisco recorded an adjusted EPS of $1.14, with total revenues reaching $15.2 billion. This surpassed the expected EPS of $1.06 and a revenue forecast of $15.05 billion. Notably, the company's product sales, a significant chunk of its total revenue, grew by 20% compared to the previous year, while its services saw a 4% growth.

Cisco's CEO and chair, Chuck Robbins, conveyed his pleasure with the company's achievements. He underscored the past year as pivotal for Cisco, marking record-breaking annual and Q4 results. Robbins accentuated Cisco's advancements in AI, security, and cloud domains and showed optimism for prospects.

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Future Financial Projections:
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Regarding future projections, Cisco expects its adjusted Q1 earnings to lie between $1.02 and $1.04, with revenue estimates between $14.5B and $14.7B. These figures are in sync with market predictions of an EPS of $0.99 and revenues of $14.6B. For 2024, Cisco's anticipated adjusted EPS ranges from $4.01 to $4.08, with revenue forecasts between $57.0B and $58.2B, slightly differing from analysts' expectations of an EPS of $4.04 and revenues of $58.4B.

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Robbins, during the earnings discussion, shed light on Cisco's increased market presence in its top three networking sectors: campus switching, wireless LAN, and SP routing. He remains hopeful about further market expansions in the forthcoming periods.
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BofA's Neutral Stance: 
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While Robbins was bullish about Cisco's readiness for the AI wave, BofA analysts held a Neutral stance for Cisco, setting a share price target at $56. Their reservations stemmed from the FY24 revenue growth predictions, which were slightly conservative compared to market anticipations.

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Similarly, Keybanc analysts held a neutral view, lauding Cisco's innovative strides and shift to more stable revenue streams. They praised Cisco's unwavering strong FCF and capital returns but hesitated about increasing the current P/E ratio without evident signs of consistent market gains.

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To find more about Cisco's Q3 Earnings, Read More Here
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