Cisco Systems (CSCO) Stock Down in After-Hours Trading on Sales Miss, Weak Outlook
NEW YORK (TheStreet) -- Cisco Systems (CSCO) - Get Report stock is falling 2.05% to $27.25 in after-hours trading on Thursday following the telecommunications equipment company's first quarter fiscal 2016 financial results that beat analysts' profit projections but missed revenue expectations.
For the latest quarter ended October 24, the company earned 59 cents a share, topping analysts' forecasts of 56 cents a share.
Revenue came in at $12.68 billion, falling short of estimates of $12.65 billion.
In the same period the year prior, the company earned 54 cents a share on revenue of $12.2 billion.
"We are accelerating our ability to deliver on growth opportunities, aggressively driving our cloud business, and delivering continued strength in our deferred product revenue, as we sell more of our portfolio in software and cloud models," said CEO Chuck Robbins.
Sales grew 4% year-over-year due to an increase in product revenue and service revenue, but its latest revenue results missed expectations due to impact of the strong U.S. dollar, the company said.
Looking ahead, the company expects earnings for the second quarter of 2016 to be between the range of 53 cents a share to 55 cents a share, down from analysts' projections of 56 cents a share, MarketWatch reports.
Based in San Jose, Cisco Systems designs, manufactures, and sells Internet Protocol (IP) based networking products and services related to the communications and information technology industry worldwide.
Separately, TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
We rate CISCO SYSTEMS INC (CSCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, increase in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
You can view the full analysis from the report here: CSCO
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