One of the more stable long-term tech holdings for many investors, Cisco (NASDAQ:CSCO) has felt some pressure today. Currently, CSCO stock is down nearly 8% at the time of writing. This comes on the heels of the company’s latest earnings release today.
Indeed, earnings season isn’t over just yet. And while Cisco remains an “old guard” tech company that many older investors still like, this is a stock that growth-oriented investors don’t seem to favor.
Cisco’s role in providing key hardware and software solutions supporting the plumbing of the global tech sector is enticing to many investors. Indeed, switches and routers still matter. That is, whether investors like it or not.
However, it appears the company’s downgraded outlook moving forward is something investors don’t like. Additionally, slower revenue growth is never good for any tech-related company.
Let’s dive into what was reported and why investors are so bearish on Cisco today.
CSCO Stock Plummets Following Earnings Today
Today, Cisco reported revenue growth and guidance that didn’t hit the mark for investors.
On the top line, the company brought in $12.9 billion in revenue for fiscal Q1. However, analysts had factored in revenue of $12.99 billion.
Sure, that’s a slight miss. And the company did beat analyst expectations of 81 cents per share, bringing in 82 cents per share of earnings this past quarter. However, the company’s outlook for the full year appears to be much lower than expected. Both earnings-per-share and revenue expectations were well below analyst expectations.
The reasons for this — component shortages and logistic costs — are understandable. However, investors appear to be growing less fond of companies that are heavily exposed to these headwinds.
Accordingly, Cisco is a stock that appears to be on the radar right now.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
