Cisco Systems (CSCO) -) shares slipped lower Wednesday ahead of the network equipment chipmaker's fourth quarter earnings after the closing bell with investors focused on its efforts to ease supply chain bottlenecks and leverage AI technology.
Analysts expect Cisco to post a bottom line of $1.06 per share for the three months ending in July, the group's fiscal fourth quarter, with revenues rising 14.9% from last year to around $15.05 billion.
Cisco cautioned in May that ongoing supply chain issues, as well as an uncertain macro environment, hit product orders , but said it would finish the fiscal year with "roughly double our normal product backlog."
The group also said it's ready to leverage the surge in AI investment, with CEO Chuck Robbins noting in May that Cisco' core networking technology is "already powering some of the leading AI models run by hyperscalers around the world."
"There remains a huge growth opportunity across all of these customers, enabled by our portfolio of hardware, software, silicon, and systems," Robbins said. "We already see early design wins in AI infrastructure and continue to see other wins and competitive displacements, leading to continued share gain in this space."
Cisco Systems shares were marked 0.17% lower in early Wednesday trading to change hands at $53.24 each, a move that would nudge the stock's year-to-date gain to around 12%.
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