Cisco Systems Inc reported a quarterly profit that beat estimates, but its shares fell 4% in extended trading due to a large backlog of products and weak demand for new orders. The company’s product orders fell 23% in the third quarter, despite aggressive steps to resolve supply chain bottlenecks. CEO Chuck Robbins said the increase in product shipments is leading customers and partners to absorb these shipments prior to placing new orders. Cisco forecast modest revenue growth in 2024 and expects to end the fiscal year with roughly double of its normal product backlog. The company also forecast full-year revenue to rise between 10.0% and 10.5% and now expects annual adjusted earnings per share between $3.80 and $3.82. Despite the weak demand, Cisco’s third-quarter adjusted earnings per share of $1 and revenue of $14.57 billion were both above market estimates.
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