Cisco Systems Inc. reported on first-quarter results and provided its second-quarter projection, which fell short of analysts outlooks.
According to Ciscos statement, its profit for the three months ended October 25th declined by 8.4% at a time of weakness in emerging markets which offset a revival in some of the companys flagship networking products. The companys net income fell from $2 billion a year ago to $1.83 billion. The companys profit excluding restructuring changes and other items, amounted to 54 cents per share, surpassing analysts forecasts of 53 cents a share.
Cisco also reported that its first-quarter revenue increased by 1.3% and reached $12.2 billion, topping expectations for a 1% increase. In addition, the company revealed in August 2014 that it intends to eliminate a total of 6 000 jobs, which represent about 8% of its global workforce.
The Chief Executive Officer of the company – Mr. John Chambers – said on a conference call: “We believe we are managing very well in a very tough environment.”
Apart from announcing its quarterly results, Cisco also shared its profit and sales outlooks for the second quarter of the fiscal year ended January 2015, which failed to reach analysts forecasts. Cisco said that it expects a revenue increase in the range from 4% to 7%. The projection fell short of analysts expectations for an 8% increase, weighed by declining demand for networking gear by U.S. carriers, which have been focused on reducing expenses.
One of the analysts, who work at Needham & Co. – Alex Henderson – commented on the companys forecast for Bloomberg: “The revenue guidance they’ve given is pretty close to the company’s revenue in January 2012.”
Cisco Systems Inc. fell 0.16% on Wednesday on the NASDAQ to close at $25.11 per share, marking a one-year change of +5.82%. The company is valued at $128.77 billion. According to CNN Money, the 34 analysts offering 12-month price forecasts for Cisco Systems Inc. have a median target of $28.00, with a high estimate of $33.00 and a low estimate of $16.00. The median estimate represents a +11.51% increase from the last price of $25.11.
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