What happened
Shares of Cisco Systems (CSCO -0.05%) were rising this morning after the tech company reported better-than-expected first-quarter fiscal 2023 results yesterday.
Cisco beat Wall Street's top- and bottom-line estimates in the quarter and raised its guidance, sending its stock higher today.
Its share price was up by 2.9% as of 11:22 a.m. ET.
So what
Cisco reported non-GAAP (adjusted) earnings of $0.86, up 5% from the year-ago quarter and ahead of analysts' consensus estimate of 0.84 per share.
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The company's top line also impressed investors as its revenue of $13.6 billion rose 6% from the year-ago quarter and beat Wall Street's average estimate of $13.3 billion.
"Our fiscal 2023 is off to a good start as we delivered the largest quarterly revenue and second highest quarterly non-GAAP earnings per share in our history," Cisco CEO Chuck Robbins said in a press release.
But the company also said today that it is undergoing a "limited business restructuring" that will result in eliminating about 5% of its workforce, or about 4,000 positions. The company said it will add back nearly the same amount of positions in different areas of the business.
Chief Financial Officer Scott Herren told MarketWatch, "This is not about reducing our workforce -- in fact we'll have roughly the same number of employees at the end of this fiscal year as we had when we started."
Now what
Investors didn't appear too concerned about the company's restructuring news, possibly because Cisco also raised its full-year adjusted earnings guidance to a range between $3.51 and $3.58, up from its previous range of between $3.49 and $3.56.
Management also increased its guidance for revenue growth to the range of 4.5% to 6.5%, up from the previous range of 4% to 6%.
With the company raising its guidance and beating analysts' consensus estimates for the first quarter, it's no surprise to see its share price move higher today.
