Cisco (CSCO) stock was sliding 4.3% to $31.57 in after-hours trading on Wednesday after the San Jose, CA-based networking giant issued a weak outlook for the second quarter of fiscal 2017.
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Cisco expects adjusted earnings between 55 cents and 57 cents a share, and forecasts that revenue will slide 2% to 4% over fiscal 2016 second quarter revenue of $11.93 billion.
Analysts surveyed by FactSet are modeling second-quarter adjusted earnings of 57 cents per share on revenue of $12.0 billion.
Cisco's fiscal first-quarter results topped Wall Street's projections, however. Adjusted earnings for the quarter were 61 cents per share, while total revenue rose 1% year-over-year to $12.4 billion. Product revenue also declined by 1% over last year in the period while service revenue climbed 7%.
Analysts surveyed by Factset were looking for first-quarter earnings of 59 cents per share on revenue of $12.33 billion.
In the same quarter last year, Cisco reported earnings of 59 cents per share on sales of $12.3 billion, adjusted for the company's divesture of its SP Video CPE business in November 2015.