Why Cisco Stock Tanked 16.7% This Week
Shares of Cisco Systems (NASDAQ: CSCO) tumbled this week, according to S&P Global Market Intelligence. The maker of networking, software, and cloud-computing solutions posted weak revenue numbers for its fiscal third quarter and is guiding for a decrease in revenue in the fourth quarter. As of this writing on Thursday, shares are down 16.7% this week.
After the market closed on Wednesday, Cisco reported its earnings for the three months ending in April. Revenue was $12.8 billion in the period, flat year over year, while adjusted earnings per share (EPS) came in at $0.87. The EPS number beat analyst expectations, but revenue was significantly off of the $13.34 billion consensus expectations.
On top of this miss, Cisco released weak guidance for a 1% to 5.5% revenue decline next quarter, compared to analyst expectations for 6% growth. These weak top-line numbers are likely the key reasons investors are selling off the stock this week.
Source Fool.com
