NEW YORK (TheStreet) -- AOL (AOL) tanked Wednesday after reporting weaker than expected fourth-quarter financial results and acknowledging its recent restructuring of its sales department will affect its 2015 revenue. Cisco Systems (CSCO - Get Report) slipped ahead of its earnings. Jive Software (JIVE) plunged after issuing a lower than expected financial forecast.
AOL fell 10.3% to close at $40.22. AOL reported its quarterly results before the markets opened Wednesday.
The Internet service provider turned media company reported net earnings of 73 cents a share on revenue of $710.3 million in the fourth quarter. While that performance beat Wall Street's earnings estimates of 70 cents a share, it fell short of revenue expectations of $727.3 million. A Cantor Fitzgerald analyst, according to an Associated Press report, had this to say about the quarter:
AOL continues to make progress on its transition to becoming the home of more programmatic, video and global platforms but....much work remains to get to a smooth growth pattern.
Earlier in the year, AOL restructured its advertising department to create a more cohesive sales force, reported the Financial Times. Most of the restructuring has now been completed. But the company expects its advertising sales to be soft during the first part of this year and not gaining traction until the second half, according to the Financial Times.
Cisco Systems slipped 2% to end the day at $26.93.
Investors were apparently nervous as Cisco prepared to report its second-quarter results after the markets closed Wednesday. Wall Street had been expecting the networking giant to report net earnings of 51 cents a share on revenue of $11.8 billion.
Cisco, however, reported adjusted earnings of 53 cents a share on revenue of $11.9 billion. Investors were also watching whether Cisco could increase its sales growth. Analysts were expecting 5% growth, according to the Wall Street Journal, but Cisco delivered 7% growth.
The networking giant also raised its dividend by 2 cents to 21 cents, driving its shares higher in after-hours trading by 1.1% to $27.24.
Jive Software plunged 13.1% to close the day at $5.29.
The enterprise software company scared investors after issuing a lower than expected first quarter and full year 2015 forecast. Jive expects to post a loss of 5 cents to 7 cents a share in the first quarter on revenue of $46 million to $47 million. That comes up short of Wall Street's expectations, which called for a loss of 6 cents a share on revenue of $48.2 million.
As for the full year 2015, Jive now anticipates a loss of 22 cents to 29 cents a share on revenue of $195 million to $200 million. Again, that is below Wall Street's expectations of a loss of 20 cents a share on revenue of 20 cents a share on revenue of $205.9 million.
Apparently, shareholders also weren't impressed with Jive's CEO selection. The company named Elisa Steele, its former chief marketing officer, as CEO. Steele has been working in the "Office of the CEO" since November, noted a report in Barron's.
Jive, however, did beat Wall Street's expectations for its fourth-quarter results, which were released after the markets closed Tuesday.