Cisco Plunges 13 After Quarterly Earnings Miss

The latest and trending news from around the world.

Cisco, Stock, NASDAQ:CSCO
Cisco, Stock, NASDAQ:CSCO from

Cisco Plunges 13% After Quarterly Earnings Miss

Technology giant Cisco Systems Inc. (NASDAQ: CSCO) saw its stock price plunge by 13% in extended trading on Wednesday after the company reported weaker-than-expected results for the fiscal first quarter that ended in October.

Key Takeaways:

*
  • Cisco's revenue missed analysts' estimates, coming in at $13.6 billion versus the $13.78 billion expected.
    • *
  • The company's earnings per share (EPS) of $0.86 fell short of the $0.88 consensus estimate.
    • *
  • Cisco cited supply chain disruptions and a stronger dollar for the disappointing results.

    • Cisco's total revenue declined by 8% year-over-year, with all of its major business segments reporting lower sales. The Infrastructure Platforms segment, which includes networking hardware, saw revenue drop by 10% to $6.74 billion.

    The Applications segment, which consists of software and services, recorded a 7% decline in revenue to $1.56 billion. The Security and Collaboration segment, which includes video conferencing and other collaboration tools, posted a 4% revenue decrease to $1.3 billion.

    Cisco CEO Chuck Robbins attributed the company's disappointing performance to "ongoing supply chain challenges and a stronger dollar." He said that the company is working to mitigate these challenges and is confident in its long-term prospects.

    Despite the earnings miss, analysts remain largely bullish on Cisco's stock. Many believe that the company's strong market position and product portfolio will enable it to weather the current challenges and continue to grow in the future.

    In a research note, JPMorgan analyst Samik Chatterjee maintained his "Overweight" rating on Cisco's stock with a price target of $60. He said that the company's "long-term growth prospects remain intact" despite the near-term headwinds.

    Cisco's stock price has now declined by over 20% year-to-date, underperforming the broader technology sector. However, some analysts believe that the recent sell-off presents an attractive buying opportunity for long-term investors.