Cisco Systems Sinks In Pre-market As Outlook Shy Of Estimates

(RTTNews) - Shares of Cisco Systems, Inc. (CSCO) are down more than 11% in pre-market on Thursday after the company provided fourth quarter as well as full-year outlook below consensus estimates.

Cisco said Covid lockdowns in China and the war in Ukraine impacted its revenue in the latest quarter.

Cisco expects fourth-quarter revenue to decline 1%-5.5% year over year. Adjusted EPS is expected to be in the range of $0.76 to $0.84. On average, analysts polled by Thomson Reuters expect the company to report earnings of $0.92 per share on revenue growth of 5.7%.

For the full year, revenue is expected to grow 2% to 3% year over year. Adjusted EPS is expected to be in the range of $3.29-$3.37. The consensus estimate for earnings is at $3.44 per share and for revenue is 6% growth from last year.

In the third quarter, Cisco reported net income of $3.044 billion or $0.73 per share from $2.863 billion or $0.68 per share in the same quarter a year ago.

Excluding one-time items, earnings were $0.87 per share. Analysts' expectation was for $0.86 per share.

Revenue for the quarter was flat at $12.8 billion compared with last year.

On Wednesday, CSCO closed at $48.36, down 4.43%. It has traded in the range of $47.47-$64.28 in the past 1 year.