[ad_1]
Cisco Systems Inc. slashed its revenue forecast for the fiscal year, and its shares were plunging in Wednesday’s extended session.
The networking company now anticipates $53.8 billion to $55.0 billion in revenue for the full fiscal year, whereas Cisco’s
CSCO,
prior outlook was for $57.0 billion to $58.2 billion. Analysts tracked by FactSet were modeling $57.8 billion on the top line.
Cisco also now expects $3.87 to $3.93 in full-year adjusted earnings per share, down from a prior forecast of $4.01 to $4.08. Analysts were looking for $4.05.
Shares of Cisco were tumbling 9% in after-hours trading Wednesday and on track to snap a streak of five post-earnings gains.
“After customers implement large amounts of recently shipped product, we expect to see product order growth rates accelerate in the second half of the year,” Chief Financial Officer Scott Herren said in the company’s release.
The company recorded fiscal first-quarter net income of $3.6 billion, or 89 cents a share, compared with $2.7 billion, or 65 cents a share, in the year-prior quarter. Cisco posted adjusted earnings per share of $1.11, whereas the FactSet consensus was for $1.03.
Revenue rose to $14.7 billion from $13.6 billion a year before, while analysts had been modeling $14.6 billion.
For the fiscal second quarter, the company expects $12.6 billion to $12.8 billion in revenue, whereas analysts were modeling $14.2 billion. The company also is looking for 82 cents to 84 cents in adjusted earnings per share, while the FactSet consensus called for 99 cents.
[ad_2]
Source link
