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Shares of the North American technology company, which specializes in communications networks and equipment, are on track for their best performance since March 2020, which marked the start of the Covid-19 pandemic.
Cisco shares rose more than 7% on Thursday, heading for their best day since March 2020, a day after the North American technology company surprised the market with earnings and announced it would cut 7% of its global workforce.
Shares of the communications networking and equipment company were up 7.19% at $48.71 on the New York Stock Exchange around 6 p.m. (Lisbon time). It was a comeback on Wall Street, and not implausible considering that the San Jose company’s bonds have fallen 10% this year alone.
Morgan Stanley recommends buying Cisco shares. “Cisco’s fiscal 2024 outperformance and better-than-expected order numbers provide relief and support Cisco’s return to a more predictable model after nearly four years of disruption,” the analysts wrote in a note to investors, as reported by CNBC.
Yesterday, Cisco announced its financial results for the fourth quarter and fiscal year 2024 ending July 27, and reported that six months after eliminating more than 4,000 jobs, the company is making more layoffs.
Quarterly profits will fall 45% to $2.2 billion (€2 billion) and revenues will fall 10% to $13.64 billion (€12.43 billion). Nevertheless, these figures are higher than experts’ estimates, which put sales at just $13.54 billion.
“In the fourth quarter, we saw solid customer demand with continued order growth across the enterprise as customers trust Cisco to connect and secure every aspect of their organizations in the age of artificial intelligence (AI),” commented Cisco President and CEO Chuck Robbins in an emailed statement announcing the report and accounts.
“Fourth quarter revenue, gross margin and earnings per share were at or above our guidance range, reflecting our operating discipline. As we seek to improve performance, we remain focused on growth and consistent execution, investing in AI, cloud and cybersecurity while maintaining returns on capital,” emphasized Chief Financial Officer Scott Herren.
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