Cisco Expected to Report Higher 4Q Profit, Revenue; Focus on Supply-Chain Headwinds -- Earnings Preview
August 18 2021 - 12:02PM
Dow Jones News
By Maria Armental
Networking-equipment giant Cisco Systems Inc., considered an
industry bellwether, is slated to report fourth-quarter results.
Here's what you need to know:
PROFIT: Analysts expect profit to increase to about 69 cents a
share, or 83 cents a share on an adjusted basis, according to
FactSet. Cisco has projected 64 cents to 69 cents a share, or 81
cents to 83 cents as adjusted.
REVENUE: Analysts expected revenue to rise about 7% to $13.04
billion. Cisco projected a 6% to 8% increase.
What to Watch:
PRODUCT ORDERS: Investors will be looking for product orders
trends and any potential impact from rising Covid-19 cases. In May,
when it reported third-quarter results, Cisco said total product
orders rose 10%, which company officials said was the highest
growth rate since the first quarter of fiscal 2012.
SUPPLY CHAIN: Cisco has forecast adjusted gross margin for the
quarter of 64% to 65%, reflecting higher supply-chain costs. Chief
Financial Officer Scott Herren had said supply-chain issues would
stretch through at least the end of 2021.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
August 18, 2021 11:59 ET (15:59 GMT)
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