San Jose’s Cisco profit forecast misses estimates, cites supply chain issues



by   |  VIEW 1372

San Jose’s Cisco profit forecast misses estimates, cites supply chain issues

Late on Wednesday, Cisco Systems Inc., the San Jose, California-based networking hardware company, had raised an alarming bell over the latest supply chain issue saying that a caustic supply-crunch would more likely to linger deeper into the year, while the Silicon Valley tech giant had also forecasted its current-quarter profits below Wall Street estimates, becoming the latest tech conglomerate expressing deep discontent over a recent cohort of supply restrain.

Aside from that, since the Cisco Systems Inc.’s red-alert on a grievous supply restrain came forth as a number of tech companies were facing a global scale chip shortage and a number of carmakers including Ford, Stellantis, Hayundai and Volkswagen alongside others were planning to slash outputs, following Cisco Systems Inc.’s downbeat current-quarter forecast, the San Jose-based tech tycoon had wrapped up Thursday’s market 0.86 per cent higher to $52.92 apiece after falling more than 5 per cent on Wednesday’s post-market trading.

Meanwhile, as Cisco had forecasted its fiscal fourth-quarter profit to stay between a range of 81 cents to 83 cents per share, missing an analysts’ estimate of 85 cents per share, Cisco Systems Inc. Chief Executive Charles Robbins said to the analysts in a post-earnings conference call, “Notwithstanding what's going on in the supply chain, our revenue guide would have been higher, which could have probably flowed through to improving EPS as well”.

Cisco expects 6% to 8% revenue growth in current quarter

Besides, according to Cisco’s quarterly earnings’ report for fiscal Q3, 2021, the San Jose-based networking tech giants net income rose to 68 cents per share or $2.68 billion, compared to a reading of 65 cents per share or $2.77 billion reported at the same time a year earlier, while excluding items, Cisco earned 83 cents per share during its fiscal third quarter of 2021 that ended on May 1.