Cisco reported earnings of 61 cents per share, beating analysts' expectations of 59 cents. Revenue came in at $12.4 billion, topping expectations of $12.33 billion. Despite the bottom and top line beat Cisco cut its revenue and earnings guidance for the second quarter.
Cisco expects revenue to decline 2% to 4%, compared to last year's second quarter. Wall Street was expecting an increase of 2%. Moreover, Cisco forecast earnings between 55 cents and 57 cents, below projections of 59 cents.
"All big IT companies are going through a transition. Transitioning to the cloud, big, data and IOT. There is no doubt they're making the transition," Drexel Hamilton global head of technology hardware and software Brian White said on CNBC's "Squawk Box" this morning.
Cisco's transition, however, may be getting held back by its communication service provider orders. "Service provider spending was weaker than they thought," White added.
Cisco saw a 12% decline in its communications-service provider orders. "To be down 12% year-over-year is a pretty sharp decline,' White noted.
Foreign exchange and certain areas of the company's portfolio not well-positioned, attributed to the weakness in the service provider business, he added.
All that said, White still considers Cisco to be a core tech holding, and an "attractive" play in the space.
"This is not a company that I think has a meaningful downside; it doesn't have huge upside, but should be a core holding. You got the nice dividend yield; it's cheap and they dominate the market they're in and expanding in the new markets," he explained.