Cisco’s Executives Optimistic Inspite of Weak Outlook, Time To Buy The Dips?
Shares of Cisco Systems Inc. plummeted more than 4% in Wednesday’s extended session after the network equipment company reported weak results for the last quarter and also issued a gloomy second-quarter earnings forecast.
The San Jose, Calif.-based networking giant said that is fiscal first-quarter earnings dropped to $2.3 billion, or 46 cents a share, from $2.4 billion, or 48 cents a share, a year earlier. During the three-month period through October, Cisco generated $12.4 billion in revenue, which is lower than forecasts of $12.33 billion.
For the second quarter, Cisco projects revenue to decline 2% to 4% compared to the same period last year with adjusted earnings per share of 55 cents to 57 cents. Meanwhile, analysts expect quarterly earnings of 59 cents a share on revenue of $12.14 billion.
However, the company’s Chief Executive Chuck Robbins and his peers were optimistic about the possibility of a repatriation holiday some of President-elect Donald Trump’s proposed policies, especially the tax cut plan.
Buy Limit at 30.20, Take profit at 31.50, Stop loss at 29.50