Cisco's first-quarter forecast disappoints, shares fall

(Reuters) - Cisco Systems Inc on Wednesday forecast first-quarter revenue and profit below Wall Street estimates, as the top network equipment maker struggles with the coronavirus crisis disrupting its supply chains and also forcing clients to hold back spending.

Reuters August 13, 2020 03:05:18 IST
Cisco's first-quarter forecast disappoints, shares fall

Ciscos firstquarter forecast disappoints shares fall

(Reuters) - Cisco Systems Inc on Wednesday forecast first-quarter revenue and profit below Wall Street estimates, as the top network equipment maker struggles with the coronavirus crisis disrupting its supply chains and also forcing clients to hold back spending.

The company's shares declined more than 3% after the bell.

Cisco expects current-quarter revenue to fall between 9% and 11% from last year, compared with analysts' estimate for a 6.87% drop, according to Refinitiv IBES data. It expects adjusted earnings between 69 cents and 71 cents per share, below estimates of 76 cents.

The pandemic has forced some of its clients to hit the pause button on big spending to conserve cash, piling more pressure on Cisco's core business of selling routers and switches.

Revenue fell about 9% to $12.15 billion (9.31 billion pounds) for the fourth quarter ended July 25, slightly above an estimate of $12.08 billion, as more people working from home during lockdowns boosted demand for its networking equipment and teleconferencing tools.

(Reporting by Ayanti Bera in Bengaluru; Editing by Devika Syamnath)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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