Cisco reported its strongest revenue growth in more than a decade, along with record fiscal-year profit, but there was little mention of the main reason.
Cisco Systems Inc, reported its strongest revenue growth in more than a decade Wednesday, along with record fiscal-year profit, but there was little mention of the main reason.
Cisco’s revenue gain for the fiscal year of 10.55% was very near the percentage that prices were raised. Gross income also jumped by a similar percentage, 11.07%. For both of those metrics, it was the biggest annual gain for Cisco since 2010, and a welcome sight for investors, as Cisco’s revenue and gross income have been stuck in the mud for the past decade, with sales bouncing around between $47 billion and $52 billion and gross income between $28 billion and $33 billion.
Gains from price increases are typically one-time gains, however, so it shouldn’t have been surprising to see Cisco executives guide for roughly flat revenue in the new fiscal year Wednesday. Yet analysts actually were expecting larger gains in the new fiscal year, and the guidance did not dissuade them from thinking that Cisco executives were lowballing the forecast, with multiple analysts describing the guidance as “conservative” in notes Thursday morning.
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