The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (

Trefis

) --

Cisco

(CSCO) - Get Cisco Systems, Inc. Report

recently released its third-quarter fiscal 2011 earnings and we have adjusted our estimates and price estimate for the company. Investors continue to penalize Cisco for its lost focus on its core businesses and weak outlook.

While Cisco has been busy trying its hand at almost everything under the sun, its competitors like

Juniper

(JNPR) - Get Juniper Networks, Inc. (JNPR) Report

,

HP

TheStreet Recommends

(HPQ) - Get HP Inc. (HPQ) Report

and

Alcatel-Lucent

(ALU)

, have been making inroads and nipping at market share in its core markets, including switching and routers.

One of the positive takeaways from the earnings is that Cisco has acknowledged its mistakes and is prepared to rectify them. This includes divesting the underperforming operations and renewing its focus on its core segments. The company also expects to optimize its operations and save costs of up to $1 billion. Such a transformation does not happen overnight and we expect that weaker performance in the coming quarters will continue to weigh on the stock. However, we also expect that Cisco will bounce back in medium term and our price estimate reflects that optimism.

Our

price estimate for Cisco stands at $23.27, which is around a 40% premium to the market price.

See our complete

analysis for Cisco stock here.

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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.