CSCO & LYTS: 2 tech stocks to examine

Summary

• On August 21, 2023, the NASDAQ 100 technology sector index increased by 2.37%.
• Cisco Systems, a hardware and software supplier, reported Q4 2023 revenue of US$15.2 billion.
• LSI Industries Inc., a visual imaging provider, reported net income of US$8.4 million in Q4 2023.

The year 2023 has seen tech stocks leading the gains in the market. A number of tech stocks have outperformed the market and have benefitted from the recent disruption caused by artificial intelligence.

The S&P 500 info tech index has risen by 37.50% YTD. Meanwhile, the NASDAQ 100 technology sector index has risen by 2.37% on August 21, 2023, compared to the previous close.

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With that let us look at two tech sector stocks that have recently reported their quarterly earnings report:

Cisco Systems (NASDAQ: CSCO)

Cisco is a supplier of hardware and software in the networking solutions sector and has a market cap of over US$225 billion.

For Q4 2023, Cisco reported a revenue of US$15.2 billion, which was 16% higher on a year-on-year basis. Meanwhile, its EPS was US$0.97, an increase of 43% over the previous corresponding period.

Cisco’s operating cash flow was US$6 billion, which was 62% higher year-on-year. For the full fiscal year 2023, Cisco reported revenue of US$57 billion, a year-on-year increase of 11%. The EPS for the full year was US$3.07, which was 9% higher than the previous year.

Cisco’s quarterly dividend of US$0.39 per common share will be compensated on October 25, 2023. The ex-dividend date for the upcoming dividend is October 4, 2023.

Based on Monday’s closing price of US$55.44, CSCO has a P/E ratio of 17.91x and a dividend yield of 2.81%.

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LSI Industries Inc. (NASDAQ: LYTS)

LSI Industries is a provider of corporate visual image and lighting solutions for petroleum and convenience stores. It has a market cap of over US$452 million.

For Q4 2023, net sales were US$123.6 million, while net income increased 63% year-on-year to US$8.4 million. This represented a diluted EPS of US$0.28. The company’s EBITDA was US$12.6 million during the quarter and its free cash flow increased 94% year-on-year to US$15.6 million.

For the full fiscal year, LSI reported net income of US$25.8 million, which marked a year-on-year increase of 71%. This meant a diluted EPS of US$0.88 for the entire year.

As per LYTS’ closing price of US$15.94 on Monday, the stock has a P/E ratio of 18.32x and a dividend yield of 1.25%.