Cisco Systems Rallies Off Q4 Earnings: 4 Analysts Break Down The Print

Zinger Key Points
  • Decline in Cisco's orders is not reflective of demand constraint, a JMP Securities analyst said.
  • "Cisco is looking more representative of the industry again," another analyst stated.

Cisco Systems Inc CSCO reported quarterly earnings of 83 cents per share, beating the consensus estimate by 1 cent per share, on revenues of $13.1 billion, ahead of the Street expectations of $12.7 billion.

Here's what the sell side has to say after the print. 

JMP Securities On Cisco Systems

Analyst Erik Suppiger maintained a Market Perform rating for Cisco Systems.

“Total orders declined 6% Y/Y, which is down significantly from recent quarters, but the decline is more reflective of volatility caused by supply chain issues than demand,” Suppiger said in a note.

“F4Q22 revenue upside reflects an improvement in Cisco’s constrained supply chain after a challenging F3Q22,” he added.

Raymond James On Cisco Systems

Analyst Simon Leopold reaffirmed an Outperform rating while reducing the price target from $63 to $59.

“Cisco remains supply chain constrained, but backlog, price hikes and easing constraints enabled it to forecast mid-single digit FY23 sales growth vs. the Street’s 3%,” Leopold wrote. “Cisco saw no evidence of demand softening,” he added.

Check out other analyst stock ratings.

Rosenblatt Securities On Cisco Systems

Analyst Mike Genovese maintained a Neutral rating while reducing the price target from $53 to $48.

“Our first takeaway from Cisco's top line beat and raise, and bottom line in line / in line, is Cisco is looking more representative of the industry again,” Genovese said in a note.

“3QFY22 results made Cisco look like an under performer, but 4QFY22 results are more representative,” he added.

Needham On Cisco Systems

Analyst Alex Henderson reiterated a Hold rating for Cisco Systems.

“After guiding well below the Street to a down quarter coming into CY2Q, Cisco reported 4QF22 results above their guide with flat Revenues, but still below the pre-guide Street estimates of 2%-5% growth,” Henderson wrote. “The improving Supply is helping Revenue come in above Street estimates, but EPS is still just in-line,” he added.

CSCO Price Action: Shares of Cisco Systems were trading 6.12% higher at $49.52 midday Thursday. 

Photo via Shutterstock. 

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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationAnalyst RatingsMoversTechTrading IdeasAlex HendersonErik SuppigerJMP SecuritiesMike GenoveseNeedhamRaymond JamesRosenblatt SecuritiesSimon Leopold
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