Cisco Systems Inc. (CSCO) shares fell 6.08% in after-hours on Wednesday, November 17, 2021, and closed the daily trading at $53.31. Even in regular trading, CSCO’s stock lost 0.42%. CSCO shares have risen 35.53% over the last 12 months, and they have moved down 1.75% in the past week. Over the past three months, the stock has lost 0.89%, while over the past six months, it has soared 7.40%.
Let’s discuss its recent news and developments.
CSCO latest news
On November 17, 2021, Cisco Systems Inc. (CSCO) announced its financial results for the first quarter of 2022 which ended on October 31, 2021.
Q1 2022 financial highlights
- CSCO reported total revenue of $12.9 billion for Q1 2022 compared to $11.9 billion in Q1 2021.
- The total cost of sales was $4.85 billion in Q1 2022 compared to $4.4 billion in Q1 2021.
- Total operating expenses were $4.6 billion in Q1 2022 compared to $5 billion in Q1 2021.
- it earned a net income of $3.0 billion or $0.70per share on GAAP basis in Q1 2022 compared to $2.2 billion or $0.51 per share in Q1 2021.
- As of October 31, 2021, the company had cash and cash equivalents and investments of $23.3 billion compared with $24.5 billion at the end of fiscal 2021.
Q2 2022 financial outlook
For Q2 2022, Cisco is expecting
- Revenue growth of 4.5% to 6.5% year over year.
- Non-GAAP gross margin rate of 63.5% to 64.5%.
- Non-GAAP earning per share in the range of $0.80 to$0.82.
CSCO new appointment
On November 16, 2021, Cisco (CSCO) appointed Bee Kheng Tay as the new President and leader for its ASEAN business. Bee Kheng is responsible for driving Cisco’s profitable growth and leading its go-to-market operations across 10 countries in the region.
CSCO Partner Summit 2021
Cisco (CSCO) announced a new Enterprise Agreement (EA) to make it easier for partners and customers to buy, sell, and manage Cisco software and services. The announcement was made at Cisco Partner Summit 2021, which was held on November 09, 2021.
The new Cisco Enterprise Agreement is a cornerstone of Cisco’s ongoing transformation and commitment to supporting partner profitability, as well as streamlining the customer experience.
Cisco also announced new technologies designed to give customers and partners the ability to manage the complexity of a hybrid workforce.
CSCO new Webex ecosystem
On October 26, 2021, Cisco (CSCO) announced significant innovations across its Webex ecosystem, the industry’s first and most comprehensive end-to-end hybrid work solution.
The company has added more than 1,000 new features to Webex over the past 12 months which dramatically improved the Hybrid Work experience. The latest features help customers empower equal participation, from everywhere.
Conclusion
The earning guidance was the reason behind its poor performance in the after-markets session on Wednesday. we can expect it to return towards positivity in the coming trading sessions on Thursday.
