Cisco shares fall on forecast
The Leuthold Group chief investment strategist Jim Paulsen reacts to the CPI report on inflation and discusses his outlook for the market.
Cisco Systems Inc. reported fiscal third-quarter results that topped Wall Street expectations but it was the company’s forecast for the current quarter that sent shares down.
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Cisco expects its per-share earnings to range from 81 cents to 83 cents, which would fall short of the expectations for 85 cents per share
Shares fell 6% in after-hours trading.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CSCO | CISCO SYSTEMS, INC. | 52.92 | +0.01 | +0.02% |
The company saw high demand for its products during the coronavirus pandemic as more people worked from home. That demand is expected to cool as economies reopen.
The maker of routers, switches, software and services reported net income of $2.86 billion.
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Net income came in at 68 cents per share. Earnings, adjusted for stock option expense and non-recurring costs, were 83 cents per share, topping the estimate by a penny.
Revenue was $12.8 billion in the period.
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Cisco shares have increased 17% since the beginning of the year.
The Associated Press contributed to this report.
