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.
Sell Stop at 31.20, Take profit 30.50, Stop loss at 31.50