Cisco Expected to Report Higher 4Q Profit, Revenue; Focus on Supply-Chain Headwinds -- Earnings Preview

   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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