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Cisco didn't do enough.

Following a healthy 17% run-up in 2018, Cisco Systems (CSCO) - Get Cisco Systems Inc. Report investors are in a selling mood in the wake of a respectable, but hardly great, earnings report.

After the bell on Wednesday, Cisco reported April quarter revenue of $12.46 billion and adjusted EPS of $0.66. Revenue rose 4% with the help of a weak dollar and acquisitions, and slightly beat a $12.43 billion consensus. EPS, boosted by $6 billion in stock buybacks but hurt by a pickup in spending, slightly topped a $0.65 consensus.

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Cisco's closely-watched product orders grew 4% annually. Enterprise order growth improved to 11% from 3% with the help of a strong IT spending environment, but order growth for small and mid-sized businesses fell to 7% from 14%. Orders from service providers fell 4%, thanks in large part to weak capital spending trends among carriers and pay-TV providers.

Following the report, shares fell in after-hours trading on Wednesday and were down 3.7% to $43.49 in early morning trading on Thursday. With Cisco having gone into earnings trading for 17 times forward EPS estimates, the company didn't have the same kind of margin of error it possessed when its stock was trading in the low 30s last summer.

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