Cisco reported strong Q3 earnings but saw revenue decline, with product revenues falling significantly, forecasting positive Q4 outlook.

From Nasdaq: 2024-06-14 11:30:06

Cisco Systems (CSCO) reported Q3 earnings of 88 cents per share, beating estimates. Revenues were down 12.8% to $12.70 billion, with product revenues falling 18.6% to $9.02 billion. Networking revenues declined 27%, while security revenues increased by 36%. Subscription revenues accounted for 54% of total revenues.

For Q4, Cisco expects revenues between $13.4 billion and $13.6 billion, with earnings between 84 and 86 cents per share.

Estimates for Cisco have been trending downward, with a Zacks Rank of #3 (Hold). In comparison, NETGEAR, Inc. (NTGR) reported a 9% decrease in revenues in the last quarter. NETGEAR expects a loss of $0.82 per share for the current quarter, with a Zacks Rank of #4 (Sell).

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