CSCO stock crashes on weak guidance in supply chain issue

Cisco system (CSCO) reported marginal fiscal third-quarter earnings by estimates as revenue missed Wall Street targets on Wednesday. The company’s outlook was lower than expected as China’s coveted lockdown has exacerbated the supply chain problem, causing CSCO stock to crash.




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The tech giant reported results after the market closed. CSCO stocks fell 15.5% to 40.85 in extended trading on the stock market today.

For the period ending April 30, Cisco earnings rose 5% to 87 cents from a year earlier, the company said. Revenue, including acquisitions, came flat at .8 12.8 billion.

A year ago, Cisco’s earnings were 83 cents per share on 12.8 billion in sales. Analysts had expected Cisco to earn 86 cents a share on the $ 13.34 billion sale.

Cisco’s product order growth in the previous three quarters was a bright spot. Product orders grew 8% in the April quarter, down from 33% in the second quarter.

“Although the Covid Lockdown in China and the Ukraine war affected our revenue quarterly, the fundamental drivers of our business are strong and we are confident in the long run,” said Chuck Robbins, chief executive of Revenue Disclosure. China has shut down factories amid the spread of the new Kovid form.

CSCO stocks: current quarter below estimates

Russia’s invasion of Ukraine reduced revenue by $ 200 million, the company said.

For the current quarter ending in July, the company has forecast earnings of 92 cents vs. 80 cents per share for CSCO stock.

The company, meanwhile, said it expects revenue to fall by 1% to 5%, projected to grow 5.9%.

As the Cisco Earnings Report headlines, technical stocks fell 23% in 2022. According to the IBD stock checkup, CSCO stock possesses a relative strength rating of 61 out of possible 99.

Cisco has moved away from the core business of selling network switches and routers. With the acquisition, Cisco aims to increase revenue from software and services

Follow Reinhard Krauss on Twitter reinhardtk_tech For updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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