The Clap
Cisco (NASDAQ: CSCO) reported revenues of $13.6 billion and an EPS of 86 cents, beating expectations on both top and bottom lines.
What
Revenues increased by 6% YoY compared to Q1 2022, but net income saw a 10% decrease. The increase in revenues comes as a result of an improving supply chain.
The company increased its annual sales growth forecast for 2023 to 4.5%-6.5%, from 4%-6% previously.
So What
Despite the strong earnings, Cisco is facing an obstacle due to technological development. Cloud and software are quickly putting physical boxes out of style, posing a potential threat to Cisco.
Now What
Cisco is down 27% since the beginning of the year.
