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Cisco Plunges: What Wall Street's Saying

Updated from 8:41 a.m. to include added thoughts from Pacific Crest Securities analyst.

NEW YORK (TheStreet) –– Cisco (CSCO - Get Report) continues to see emerging market weakness, noticeably in China, where Cisco CFO Frank Calderoni said Sino-American relations are hurting the company, forcing an additional 6,000 layoffs.

In a phone interview, Calderoni said the emerging market weakness has been going on for over a year, not only in China but the other larger BRICM countries (Brazil, Russia, India, China, Mexico), pointing out Brazil, as well as China. "China, if you look at the numbers we announced, was further impacted in the fourth quarter then it was in the third quarter," Calderoni said. "It's a combination of political as well as economic, and it does vary from country to country. We know generally, we have been impacted by some security issues in the past year, as well as some political accusations made between the U.S. and China and I think we're not alone in that."

On the earnings call, CEO John Chambers said the service provider market continued to remain difficult, with sales down 11% and orders down 13% year over year. The company also noted emerging markets sales were weak, with the company expecting weakness there for several quarters. Of Cisco's emerging market business, 15 countries saw order rates decline by 9%.

Read MoreCisco Drops on Job Cuts, Emerging Market Weakness

In the fiscal fourth quarter, San Jose-based Cisco earned 55 cents a share on $12.4 billion in sales. Switching products revenue, which accounts for nearly 30% of the business, generated $3.65 billion in sales, down 4%, while routing products fell 7%. The company's video products business fell 10%, but data center products, wireless products and security products revenue all rose, climbing 30%, 1%, and 29%, respectively.

During the quarter, cash flow from operations were $3.6 billion, up from $3.2 billion in the fiscal third quarter, but down from $4 billion in the year ago quarter. At the end of the 2014 fiscal year, cash flows from operations were $12.3 billion, and cash, cash equivalents and investments were $52.1 billion.

Analysts surveyed by Thomson Reuters were expecting the San Jose-based Cisco to earn 53 cents a share on $12.14 billion in revenue.

On the call, Cisco said it expects fiscal first quarter revenue to be between a range of flat to up 1%. Analysts surveyed by Thomson Reuters are expecting Cisco to earn 53 cents a share on $12.18 billion in revenue, which is slightly higher than the $12.085 billion it generated in the first quarter of fiscal 2014.

Shares of Cisco were moving lower in early Thursday trading, falling 2.9% to $24.48.

Read MoreHow Amazon Intends to Crush Square in Mobile Payments

Following the report and the earnings call, analysts were slightly positive on the stock. Here's what a few of them had to say:

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