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Cisco Systems (CSCO) Increases Yet Falls Behind Market: What Investors Need to Know

Cisco Systems, Inc. (CSCO) recently reported its Q4 2022 and FY 2022 earnings, which saw the company increase its revenue and earnings per share (EPS) year over year. However, despite this growth, Cisco's stock price fell behind the broader market.

For the quarter, Cisco reported revenue of $13.56 billion, a 6.3% year-over-year increase. EPS came in at $0.83, a 10.1% year-over-year gain. The company's results beat analyst estimates for both revenue and EPS.

For the full year, Cisco reported revenue of $52.24 billion, a 5.4% year-over-year increase. EPS came in at $3.37, a 9.1% year-over-year gain.

Despite these strong results, Cisco's stock price fell 1.4% in the quarter, underperforming the broader market. This decline was largely due to the company's guidance for the current quarter, which fell short of analyst expectations.

Looking ahead, Cisco expects revenue to grow between 4.5% and 6.5% year over year in Q1 2023, which is below the analyst consensus estimate. The company also expects EPS to grow between 7.5% and 9.5% year over year, which is also below the analyst consensus estimate.

The decline in Cisco's stock price has created an attractive entry point for investors, who may see the company's strong fundamentals and growth potential as a reason to buy in. However, investors should also be aware of the company's guidance and the potential for continued volatility in the technology sector.