Cisco Projects Reduced Revenue in Current Quarter
November 13 2019 - 5:44PM
Dow Jones News
By Maria Armental
Cisco Systems Inc., the networking-equipment giant, projected
the first quarterly revenue decline in more than two years, blaming
what it called a pause in customer spending.
The company, considered a proxy for corporate high-tech hardware
demand, expects revenue to fall 3% to 5% this quarter. Analysts
polled by FactSet were expecting revenue to increase about 2.4% to
$12.75 billion.
The company expects adjusted earnings between 75 cents and 77
cents a share. Analysts projected 79 cents a share.
Shares fell 5% to $46.09 in after-hours trading.
On Wednesday, Cisco reported first-quarter profit fell 18% to
$2.93 billion, or 68 cents a share. On an adjusted basis, profit
rose to 84 cents a share from 75 cents a share a year earlier.
Cisco forecast 64 cents to 69 cents a share, or 80 cents to 82
cents a share as adjusted. Analysts surveyed by FactSet projected
69 cents a share, or 81 cents a share as adjusted.
Revenue, meanwhile, rose 0.7% to $13.16 billion, beating
analysts' projections and at the low end of Cisco's projection of
flat to up 2%.
Cisco said it still expects to wrap up during the second half of
the current business year the acquisition of Acacia Communications
Inc. The deal requires approval in China.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
November 13, 2019 17:29 ET (22:29 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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