Water Tower Research Managing Director John Roy tells Proactive he feels technology conglomerate Cisco Systems (NASDAQ:CSCO) Inc (NASDAQ:CSCO)'s 8% revenue growth year-on-year is 'pretty good' for a $50B company, despite current supply chain challenges.
Roy says he was surprised to see Cisco give full year guidance, especially with the Delta variant of the coronavirus ramping up, he says it shows confidence in Cisco to hit its numbers of $3.38 to $3.45 in adjusted earnings per share.
Roy believes demand strength and growth in its software and services division, which does not need components, is the reason for management confidence.