Cisco Gives Upbeat Forecast as Chip Supply Shortages Ease
Aug 18, 2022 By MarketDepth
Cisco Systems Inc. (CSCO:NYQ) released promising quarterly sales forecasts as they can fulfil more orders as the chip supply increases.
The company announced revenue would grow from 2% to 4%, beating analyst expectations of a flat growth year. Cisco is up 6% intraday on the positive news after taking a 25% dive year to date.
Cisco also said that forecasts for ordering are looking steady as companies continue to purchase products. As the tech industry is in a bearish state, the budget tightening hasn’t affected their buying.
“We’re not seeing any signs of order cancellation,” he said. Unlike the personal computer industry, which is suffering a steep decline, networking and security technology remains essential for companies, Herren said. “It’s not optional.”Chief Financial Officer Scott Herren
The company announced declining revenue in the fourth quarter to $13.1 billion from a year earlier they still beat analyst expectations of $12.79 billion. Mainly to blame were supply chain issues as chips shortages were rampant across the industry. With demand of networking equipment still strong within the tech sector the company doesn’t see any slowing demand.
“Simply said, networking is becoming too critical, and we are in the midst of an unprecedented investment cycle in networking.”Statement from the company