Cisco cuts annual guidance as network hardware demand slows; shares plunge
Investing.com — Cisco cut its annual guidance Wednesday, though reported better-than-expected fiscal first-quarter results despite slowing demand for network hardware.
Cisco Systems Inc (NASDAQ:CSCO) fell 9% following the report.
Cisco announced adjusted EPS of $1.11 on revenue of $14.7B billion. Analysts polled by Investing.com anticipated EPS of $1.03 on revenue of $14.62B.
For Q2, adjusted EPS is expected between $0.82 to $0.84 on revenue of $12.6B to $12.8B, compared with analyst estimates for EPS of $0.99 on revenue of $14.19B.
Looking ahead, the company cut its guidance for 2024, forecasting adjusted EPS in a range of $3.87 to $3.93 a on revenue of $53.8B to $55.0B, compared with a prior estimates for adjusted EPS of $4.01 to $4.08 on revenue of $57B to $58.2B.
The company said, however, it expects to see demand return in the second half of the year.
«After customers implement large amounts of recently shipped product, we expect to see product order growth rates accelerate in the second half of the year. We are committed to delivering operating leverage and increasing capital returns to our shareholders,» the company said.
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