Cisco Systems, Inc. ($CSCO) Earnings (Q4 FY22)

 Cisco Systems, Inc. ($CSCO) Earnings and Opinion:


Cisco Systems is a company in the Technology sector and operates in the Communication Equipment industry. The company designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry. Cisco Systems was incorporated in 1984 and is currently headquartered in San Jose, California. The company made its debut on the stock market in 1990.

Cisco Systems Earnings Results:

  • Revenues of $13.10B beating expectations of $12.73B
  • Gross Profit of $8.29B beating expectations of $8.24B
  • Operating Income of $4.24B beating expectations of $4.16B
  • Adjusted EPS of $0.83 beating expectations of $0.82
Opinion:
Cisco stock moved higher after reporting earnings yesterday after the market had closed. They had a lot of top line beats on most of the metrics. This outweighed the misses on margins. Revenues came out strong, and the company can be happy with where it stands at the end of the 2022 fiscal year for them. Guidance was mixed, but that didn't affect the stock from rising. I think the main reason most of the margins are seeing decreasing, is due to the fact that costs are increasing, so it is costing more to both create and deliver the product. They are obviously doing a solid job of generating revenues to make up for the increases in costs. They were able to beat on every revenue category except for Internet of the future, which only missed by 8.2%. For valuation, Cisco has a P/E ratio of 16.1 which is lower than the industry average of around 19. P/S ratio is sitting at 3.75 which is decent. They have a current ratio of 1.49, which is a good place to be in, and cash outweighs debt as well. For my opinion, Cisco seems to be undervalued currently. I think the stock has a lot of upside, along with many analysts who raised the PT of the stock yesterday. The company is in a good position and seems to be working hard to shun out the rising costs and not letting it affect their performance. I really like Cisco here and don't forget you can get some income from them in form of a dividend as a shareholder.


*Information from Yahoo Finance, CMLVIZ, Consensus Gurus.

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