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
Create account Try a 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
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
