NEW YORK (TheStreet) --Cisco Systems (CSCO) reported stronger than expected earnings and revenue for the fiscal 2017 first quarter, however, offered lower guidance for the current quarter, after the market close on Wednesday.

Cisco cut its revenue and earnings guidance for the fiscal 2017 second quarter. Consequently, the stock is down 6% Thursday morning. 

Cisco expects revenue to decline 2% to 4% when compared to the year-ago quarter. Wall Street was expecting an increase of 2%. Additionally, Cisco is forecasting earnings between 55 cents and 57 cents, below analysts' projections of 59 cents.

"We called out this general weakness that we saw in some of our general service providers," Cisco CEO Chuck Robbins told TheStreet's Jim Cramer on CNBC's "Squawk on the Street" this morning.

A 12% order decline in its communications-service provider business was the "primary driver for the guide," Robbins noted. 

Despite the steep decline, Robbins contended the weak results are not indicative of market share loss.

"We've got some consolidation that's occurring and you can assume that we have visibility on an account-by-account basis and I can tell you, I am not concerned about losses," he stated.

Positives in Cisco's quarter, the company's global enterprise business is up 5%. Additionally, deferred revenue from both its subscription and SAS businesses rose 48%.

"There were a lot of areas for us to be very excited about," Robbins said.

Looking ahead, one potential benefit on Cisco's horizon is the possibility of lower repatriation rates under a Donald Trump presidency.

"We have certainly been a proponent of repatriation for quite a long time. We would look at a combination of our dividend, our buybacks, as well as strategic M&A. We're excited about the possibilities it could create for us," Robbins said.

Furthermore, when you look at Cisco it is imperative to look out beyond just one quarter, he noted. Cisco has been strategically investing in new areas including its cloud network business. These investments "are working," Robbins contended.

(Cisco is held in Jim Cramer's charitable trust portfolio Action Alerts PLUS. See all of Cramer's holdings with a free trial).

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Cisco as a Buy with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that the team rates.

You can view the full analysis from the report here: CSCO


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