Cisco Shares Nose-Dive after Forecast Points to A Decline in Current Quarter Revenue

Shares of Cisco Systems Inc. plunged nearly 7.7 percent in after-hours trading on Wednesday after the technology conglomerate said it would cut more jobs and forecast current-quarter revenue to decline at a faster rate.

The California-based networking giant reported net income of $2.52 billion, or 50 cents a share, on sales of $11.94 billion. Adjusted for one-time items, Cisco claimed earnings of 60 cents a share. Analysts had expected adjusted earnings of 58 cents a share on sales of $11.9 billion.

After having lost 1% in revenue last quarter, Cisco expects revenue for the current quarter to drop by 4% to 6% on a yearly basis to fall in a range between $11.9 billion to $12.1 billion. This is well below market’s expectation for a sales total of $12.5 billion on average.

Cisco also plans to cut 1,100 more jobs after having announced to slash a total of 5,500 last August.

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