The premier leader in networking for the internet, Cisco, manages to produce sluggish reports on its quarterly performance report. The tech giant missed most analysts’ forecasts and expectations for the previous quarter. Cisco’s shares stumbled as a result of the lackluster performance and figures they published; market watcher and analysts were concerned on the company’s predicaments
Cisco’s EPS and Revenue were lagging behind the most on the recent quarterly report they published. The revenue slump is alarming as the company has stated in the previous years that they solely rely on the sales of their software, but this time it looks bleaker.
Cisco’s Missed Report
The networking leader missed on the following aspects; revenue and EPS. The company published, excluding a certain item, a total of 61 cents in earnings per share; this is a stagnant report and barely moved but managed to hit the 61 cents forecasts but it wasn’t enough for investors. On the darker side, the company reported total revenue of $12.1 billion, wildly behind most analysts’ expectations of $12.6 billion.
One of the alarming things about the revenue release is that the company is currently suffering to a total of 4% decrease on a year over year. Another thing to note is that Cisco’s current situation on quarterly declines; they now suffer a total of 7 consecutive quarters of decline. Even with that said, earnings beat and forecasts are still attained although figures and other factors continue to grow lackluster from the previous quarters.
CEO Chuck Robbins noted that "We had another strong quarter and a transformative year. We made tremendous progress transitioning our business to more software and recurring revenue and delivered on our commitment to accelerate innovation in our core and across the portfolio," and "The network has never been more critical to business success and we are building the network of the future."
Cisco’s Revenue Expectations
A recent note from the company revealed that they are expecting a total of 59 cents to 61 cents on their EPS for the first quarter of 2018. While revenue is expected to drop a total of 1% to 3% on the year-ago revenue data they had. While analysts are also weighing on the future of the company, they are expecting a total of $12.05 billion in revenue and a total of 61 cents increase on their EPS.
The company’s shares fell by a total of 1% on later trading yesterday; while in the after-hours trading, the company’s shares on a total of 2.5%. The major conflict on the company’s firewall protection and breach detection, or also known as their security business have been failing them in the recent quarters and it is severely affecting Cisco’s shares.
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