Cisco plans to lay off around 4,000 employees as part of a personnel “rebalancing,” following a solid earnings report and full-year projections from the networking giant. According to published sources, the relocation is part of a $600 million restructuring that will also affect Cisco’s real estate assets.
According to a Cisco spokeswoman, the changes will affect around 5% of our employees. At the end of 2022, Cisco had around 83,000 full-time employees. Cisco executives hinted at the changes in their latest earnings statement, which was released late yesterday.
Earnings per share for the digital communications provider were $0.86, $0.02 more than the analyst expectation of $0.84. Revenue climbed 5.7% year on year to $13.6 billion, above estimates of $13.29 billion. Total annualized recurring revenue (ARR) increased by 7% year on year to $23.2 billion, while software revenue grew by 5%.
The company claims that its improving supply chain condition, along with a growth in annualized recurring revenue, a considerable backlog, and strong outstanding performance responsibilities, gives it “excellent visibility and predictability.”
Cisco increased its full-year guidance to $3.51 to $3.58 per share, up from $3.49 to $3.56 previously. Revenue growth will be in the range of 4.5% to 6.5% for the timeframe, up from 4-6% previously. The consensus for fiscal second-quarter adjusted earnings per share is $0.84 to $0.86. Revenue growth is expected to range between 4.5% and 6.5% during the term, exceeding the 4.2% estimate.
On November 17, 2022, Cowen & Co. analyst Paul Silverstein maintained an Outperform rating and increased the price target from $60 to $61. This expert, on the other hand, expects a 31% upside in the company’s price but has a 37% accuracy rate.
Credit Suisse analyst Sami Badri confirmed his Outperform rating on the company and boosted the price target from $65 to $67. This expert anticipates a 44% increase in the company’s shares and has a 67% accuracy rate.
Barclays analyst Tim Long downgraded the company’s stock from Overweight to Equal-Weight and lowered the price objective from $56 to $46. Long forecasts a 1% decline in the company’s shares and has a 63% accuracy rate.
Deutsche Bank analyst Matthew Niknam maintained a Hold rating on the company. He increased the price target from $51 to $54. Niknam predicts a 16% increase in the company’s stock and has a 56% accuracy rate.
Cisco Systems, Inc., or simply Cisco, is a multinational digital communications technology company based in San Jose, California. It is a multinational corporation that designs, manufactures, and sells networking gear, software, telecommunications equipment, and other high-technology services and products.
Cisco specializes in specialized technology areas such as the Internet of Things (IoT), domain security, videoconferencing, and energy management. Its products includes Webex, OpenDNS, Jabber, Duo Security, and Jasper.
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