The share prices for Cisco have recorded a significant rally in the recent trading session. According to the software giant, the latest trading session was the best one they recorded in almost years.

Cisco Shared Earning Results

The reason behind the surge in the trading prices of Cisco was the promising earnings the computer networking company shared for the latest quarter.

In addition to the promising earnings, Cisco has also shared guidance for the upcoming year, which is also very promising.

Cisco revealed that for the fiscal fourth quarter, its earnings were worth 83 cents per share. The earnings it generated were stronger than the $12.79 billion estimation made by the Refinitiv analysts.

In the same quarter of the past year, the earnings were $13.1 billion. This means Cisco’s earnings expectation for the recent quarter was less compared to the same quarter last year.

Chuck Robbins’ Comments

Chuck Robbins, the CEO of Cisco talked about the challenges the company has been facing. He also mentioned backlog being one of the major challenges they are currently facing.

He was seen stating that the company is dealing with a record backlog and they have been trying to fix it as soon as possible.

The delay is not from their end but it is the supply chains that are disrupted. As soon as the problem with the supply chains is resolved, they will regain full strength to resolve the backlog they have on hand.

He added that in recent months, they have seen the volume of the backlog go down. This is a positive signal for them as their company has started making growth in their efficiency.

They are hopeful that by next year, their backlog may end, which would allow them to focus on their upcoming projects. This way, they will be able to increase their revenues and generate strong incomes.

Guidance for the 2023 Fiscal Year

For the respective year, Cisco hopes to increase its growth significantly. It is aiming to increase it up to 4% to 6%. Cisco has revealed that in the fiscal 2022 year, the revenue growth they have recorded is 3.4%.

Many analysts have expressed that the earnings reported by Cisco are promising. Multiple analysts have shared their optimism about the performance of the company in recent quarters.

Cisco has confirmed that while setting expectations for guidance, they have taken the major challenge they currently face into consideration. For now, the major challenge for Cisco is the backlog.

Therefore, the company is determined to deal with the backlog as efficiently and effectively as possible. They also want to improve the strategy and tactics they need to be in place to deal with the backlog much faster than before.