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Cisco Plunges After it Misses Q3 Revenue Expectations, Cuts Guidance

Published 05/19/2022, 04:30 AM
Updated 05/19/2022, 04:30 AM
© Reuters.

© Reuters.

Investing.com -- Cisco (NASDAQ:CSCO) reported on Wednesday third-quarter earnings that beat analysts' forecasts and revenue that fell short of expectations.

Cisco announced earnings per share of $0.87 on revenue of $12.84B. Analysts polled by Investing.com anticipated EPS of $0.8627 on revenue of $13.34B.

Cisco shares lost 14.00% in after-hours trade following the report.  

The tech company's revenue was flat year over year, impacted by Covid-related lockdowns in China and the war in Ukraine, but it said it saw solid demand with product order growth up 8% year over year.

"We continued to see solid demand for our technologies and our business transformation is progressing well," said Chuck Robbins, chair and CEO of Cisco. "While Covid lockdowns in China and the war in Ukraine impacted our revenue in the quarter, the fundamental drivers across our business are strong and we remain confident in the long term."

Cisco's shares were also hit after it lowered full-year estimates. It now expects full-year earnings per share between $3.29 and $3.37, down from the previous $3.41 to $3.46 per share expectation.

Full-year revenue growth was also lowered to between 2% and 3%, from the previous outlook of 5.5% to 6.5%.

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