Cisco (CSCO.US) stock tumbles more than 8.0% after the networking hardware company reported quarterly revenue that fell short of analysts’ expectations and issued weaker-than-expected guidance. The tech giant's first quarter earnings rose 8% to 82 cents a share from a year earlier, slightly above market forecasts of 81 cents a share. Revenue increased 8% to $12.9 billion, including acquisitions. A year earlier, Cisco earnings were 76 cents a share on sales of $11.96 billion. However Wall Street expected earnings of on revenue of $12.99 billion.
Also for the current-quarter company expects that revenue growth will not match analysts' expectations, citing not only the semiconductor shortage but also higher transport and logistics costs in its supply chain. For the current quarter ending in January, the company forecasts earnings of 81 cents per share compared to analysts’ projections of 82 cents per share. For fiscal year 2022, the company forecasts 5% to 7% revenue growth and earnings of $3.38 to $3.45 a share, while analysts polled by Refinitiv were looking for earnings of $3.42 per share and $52.87 billion in revenue, which would equal 6.1% growth.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Cisco (CSCO.US) stock launched today's session with a bearish price gap, below long-term upward trendline. Initially buyers tried to push the price higher, but were unable to break above resistance at $53.70 which coincides with 200 SMA (red line) and 23.% Fibonacci retracement of upward wave launched in March 2020. If current sentiment prevails, support at $49.50 may be at risk. This level is strengthened by 38.2% Fibonacci retracement. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
