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Cisco systems (NASDAQ:CSCOShares of ) rose more than 5% on Thursday as investors threw their support behind the network equipment giant following its upbeat quarterly results and forecasts.
On Wednesday night, Cisco (CSCO) said that It expects its fiscal third-quarter earnings, excluding one-time items, to be between 96 cents and 98 cents per share, with revenue up 11% to 13% from a year earlier. For its full fiscal year, Cisco (CSCO) forecast earnings of $3.73 to $3.78 per share, after pegging earnings in a range of $3.51 to $3.58 per share. The company also estimates that sales for the year will grow between 9% and 10.5% during its fiscal 2022 year.
Adding to its outlook, Cisco (CSCO) reported second-quarter earnings of 88 cents per share on $13.6 billion in revenue, beating analyst forecasts for a profit of 86 cents per share on sales of $13.41 billion.
While the initial reaction on Wall Street to Cisco (CSCO) was positive, some analysts warned of the company’s backlog of orders. Jefferies’ George Notter said investors should put Cisco’s (CSCO) guidance into “perspective given the ongoing supply chain normalization.”
Notter estimated that Cisco’s (CSCO) order book for the second quarter was approximately $14 billion, or roughly double its normal levels.
