- Cisco (NASDAQ:CSCO) stock is a big mover this morning after reporting disappointing Q3 results
- The company missed estimates for its quarterly revenue
- It also cut its guidance for the full year
Cisco (NASDAQ:CSCO) stock is tumbling 13% in morning trading after the company reported lower-than-expected revenue for its fiscal third quarter and slashed its full-year profit guidance.
For its Q3, which ended last month, earnings per share, excluding certain items, came in at 87 cents, versus analysts’ average estimate of 86 cents. However, the network equipment maker reported a top line of $12.8 billion, meaningfully below the mean outlook of $13.34 billion.
Moreover, Cisco reduced its full-year EPS guidance to $3.29-$3.37 from $3.41-$3.46. The war in Ukraine and China’s lockdowns hurt Cisco’s business, CEO Chuck Robbins reported.
On a positive note, however, Robbins said in a statement that “the fundamental drivers across our business are strong and we remain confident in the long term.” And according to the CFO Scott Herren, Cisco is “not seeing any weakening of demand.”
Wall Street Knocks CSCO Stock for Supply Chain Issues
Still, research firm Jefferies implied that the “execution” of Cisco’s supply chain was subpar. Specifically, the firm stated that a number of Cisco’s rivals, including Arista (NYSE:ANET), had started reacting to the sector’s supply chain issues much sooner than Cisco did. And another firm, Evercore, told Barron’s that Cisco’s orders increased just 8% year over year last quarter, down from a 33% YOY gain during the previous quarter.
On the date of publication, Larry Ramer did not hold (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.
