By Sam Boughedda
Cisco Systems (NASDAQ:CSCO) shares are up after-hours Wednesday on the back of the company's fiscal first-quarter earnings release.
The digital communications firm topped profit and revenue consensus estimates, posting adjusted earnings per share of $0.86, $0.02 better than the analyst estimate of $0.84, with revenue coming in at $13.6 billion, above expectations of $13.29B.
Cisco shares are currently trading 4.75% above their closing price on Wednesday, at $46.50 per share.
The company's total annualized recurring revenue (ARR) was $23.2B in fiscal Q1, up 7% year-over-year, with product ARR rising 12%. In addition, software revenue increased by 5%, while software subscription revenue was up 11% year-over-year.
"Our fiscal 2023 is off to a good start as we delivered the largest quarterly revenue and second highest quarterly non-GAAP earnings per share in our history," said Chuck Robbins, chair and CEO of Cisco. "These results demonstrate the relevance of our strategy, our differentiated innovation, and our unique position to help our customers become more resilient."
The company added that its easing supply chain situation, alongside its annualized recurring revenue increase, significant backlog, and strong remaining performance obligations, provides the company with "great visibility and predictability."
As a result of its positive earnings, Cisco increased its full-year guidance. It now sees FY23 adjusted earnings per share between $3.51 and $3.58, while revenue growth for the period is expected to be from 4.5% to 6.5%.
Fiscal second-quarter adjusted earnings per share are expected to be between $0.84 to $0.86, while revenue growth during the period is seen from 4.5% to 6.5%.