Cisco Stock Tumbles As Quarterly Revenue Misses, Guidance Disappoints – Investor's Business Daily

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Cisco Systems (CSCO) reported fiscal first-quarter revenue that missed estimates while profit edged by Wall Street targets. Cisco stock plunged in extended trading on Wednesday as its revenue outlook came in below expectations amid global supply chain disruptions.

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For the period ended Oct. 30, Cisco earnings rose 8% to 82 cents a share from a year earlier, the company said. Revenue also rose 8% to $12.9 billion, including acquisitions.

A year earlier, Cisco earnings were 76 cents a share on sales of $11.96 billion. Analysts expected Cisco earnings of 81 cents a share on sales of $12.99 billion.

For the current quarter ending in January, Cisco forecasts earnings of 81 cents a share vs. estimates of 82 cents. Cisco projects revenue growth of 5.5% at the midpoint of its guidance, missing projections for 7.2% growth.

Cisco stock tumbled 5.1% to 53.87 in after hours trading on the stock market today. In Wednesday’s regular session, CSCO stock lost 0.4%.

Cisco Stock Trades Below Entry Point

Cisco repurchased $256 million of its own stock in the October quarter. It has $7.7 billion remaining in stock buyback authorization.

Heading into the Cisco earnings report, the company owned a Relative Strength Rating of 68 out of a best-possible 99, according to IBD Stock Checkup.

From a technical view, Cisco stock trades below a 60.34 entry point, according to IBD MarketSmith analysis. CSCO stock had gained 27% in 2021.

Cisco stock has shifted away from its core business of selling network switches and routers. With acquisitions, Cisco has aimed to increase revenue from software and services.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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