NEW YORK ( TheStreet) -- With its second-quarter earnings report, Cisco (CSCO - Get Report) didn't exactly evade those turbulent "air pockets" that led to its weak guidance last quarter. While Cisco posted better-than-expected sales and EPS Wednesday, it fell short with what analysts wanted to see in terms of gross margin and guidance.
The networking giant brought in revenue of $10.4 billion and earned 37 cents a share, compared to $9.8 billion and 40 cents a share in the same period last year. Analysts surveyed by Thomson Reuters had forecast sales of $10.24 billion and earnings of 35 cents a share.
Cisco reported a gross margin of 62.4%, below the consensus call of 63.3% and below the 65.6% reported in the year-ago period.As he did last quarter, Cisco CEO John Chambers noted weakness in the public sector; that and the low-end guidance helped pushed the networking giant's share price down 8.58% to $20.15 in extended trading Wednesday. Please feel free to join TheStreet's discussion by clicking on the blog above. --Blog written by Scott Moritz and James Rogers in New York, with commentary from TheStreet's Market Movers portfolio manager Ken Shreve and TheStreet contributor Eric Jackson, founder and president of Ironfire Capital. >To submit a news tip, send an email to: email@example.com.