The brand of U.S. networks big Cisco Programs is seen in entrance of their headquarters in Issy-les-Moulineaux, close to Paris, France August 6, 2022. REUTES/Sarah Meyssonnier/file Acquire Licensing Rights
Aug 16 (Reuters) – Networking gear maker Cisco Programs' (CSCO.O) CEO talked up market share wins and synthetic intelligence (AI) alternatives, as he moved to allay fears over slowing development after a disappointing annual income forecast.
The remarks helped the corporate's shares reverse course in prolonged buying and selling to rise greater than 2% on Wednesday. However the inventory has underperformed a broader market rally this yr with an 11% rise, dogged by worries {that a} cloud spending slowdown would hit orders.
Cisco forecast full-year income to be between $57 billion and $58.20 billion, under the Refinitiv estimate of $58.38 billion. Rival Juniper (JNPR.N) additionally supplied a weak forecast final month.
However Cisco CEO Chuck Robbins mentioned the corporate had gained greater than 3 proportion factors of market share in its three largest networking markets within the first quarter and expects extra share features in these areas.
He additionally mentioned the corporate was more likely to be a number one provider of the networking gear wanted for AI workloads. “This can be a enormous alternative for Cisco.”
Main cloud suppliers, together with Microsoft (MSFT.O), have just lately unveiled plans to extend spending on servers that energy AI companies, in a possible enhance for suppliers of networking {hardware} equivalent to switches and routers.
Cisco, whose prospects embody telecom agency AT&T (T.N) and auto retailer AutoNation (AN.N), additionally reported fourth-quarter income of $15.20 billion, beating the estimate of $15.05 billion.
The corporate, benefiting from easing provide chain hurdles, has tried to cut back its dependence on one-time gross sales of costly {hardware} by pushing extra of its software program companies, that are extra dependable as they bring about in recurring funds.
Its quarterly adjusted revenue was $1.14 per share, in contrast with analysts' expectations of $1.06 per share.
Cisco expects adjusted earnings per share of $4.01 to $4.08 for the total yr, in contrast with the estimate of $4.04.
Reporting by Zaheer Kachwala in Bengaluru; Modifying by Shilpi Majumdar
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