What's Going on With Cisco (CSCO)?

NEW YORK (TheStreet) -- A miss on the top-line during its first quarter and weak guidance had Cisco  (CSCO) shares spiraling on Thursday. By mid-afternoon, shares had plunged 12% to $21.13, and 194 million shares had changed hands, five times its 90-day average daily trading volume.

Reporting after the bell Wednesday, the networking equipment company recorded first-quarter revenue 2% higher to $12.1 billion, which Thomson Reuters expectations by $240 million.

For the second quarter ending January, the San Jose-based business forecast net income between 45 cents a share and 47 cents a share, and sales in the range of $10.89 billion to $11.13 billion. Analysts, however, had anticipated 52 cents a share on $12.6 billion in revenue. For fiscal 2014, the company predicts earnings between $1.95 and $2.05 a share, below consensus of $2.10 a share.

Management, however, remains optimistic with CFO Frank Calderoni confident the company can stay the course.

In ratings, Credit Suisse stamped Cisco with an "underperform" rating and price target of $20 on weak guidance, while UBS reiterated it a "buy" but put it in the "penalty box", cutting its price target to $26.50 from $28.50.

Jim Cramer and Stephanie Link closed out their Cisco position in their Action Alerts Plus portfolio, selling 3,700 shares on the "shockingly horrible revenue guidance".

TheStreet Ratings team rates Cisco Systems Inc as a Buy with a ratings score of B+. The team has this to say about their recommendation:

"We rate Cisco Systems Inc (CSCO) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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