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Not the best of news! From Seeking Alpha 5:13 PM Cisco offers poor guidance, shares tumble Cisco (CSCO) guides on its FQ1 CC for FQ2 revenue to decline 8%-10% Y/Y, and EPS of $0.45-$0.47. That's well below a consensus for a 4.1% revenue increase and EPS of $0.52. The networking giant is also guiding for FY14 (ends July '14) EPS of $1.95-$2.05, below a $2.10 consensus.Orders fell 4% Y/Y in FQ1 after growing 4% in FQ4. The two biggest culprits: Service provider orders fell 13%, and emerging markets orders fell 12% (India and China -18% each). The company isn't currently expecting order improvement in FQ2.Service provider weakness is blamed on soft carrier spending, declining set-top sales (attributed to product shifts and an effort to move away from low-margin deals), core router product transitions, and low-end edge router share loss (likely to Juniper).Also: Cisco estimates the government shutdown impacted FQ1 U.S. federal sales by $50M, and the political environment in China is said to remain "challenging."CSCO now -9.8% AH. Also off: JNPR -2.8%. FNSR -1.3%. More names could sell off in time.
Comments
But hesitant at this level
http://www.reuters.com/article/2013/11/13/us-gundlach-stocks-interview-idUSBRE9AC1AM20131113?feedType=RSS&feedName=businessNews
Not the best of news!
From Seeking Alpha 5:13 PM
Cisco offers poor guidance, shares tumble
Cisco (CSCO) guides on its FQ1 CC for FQ2 revenue to decline 8%-10% Y/Y, and EPS of $0.45-$0.47. That's well below a consensus for a 4.1% revenue increase and EPS of $0.52. The networking giant is also guiding for FY14 (ends July '14) EPS of $1.95-$2.05, below a $2.10 consensus.Orders fell 4% Y/Y in FQ1 after growing 4% in FQ4. The two biggest culprits: Service provider orders fell 13%, and emerging markets orders fell 12% (India and China -18% each). The company isn't currently expecting order improvement in FQ2.Service provider weakness is blamed on soft carrier spending, declining set-top sales (attributed to product shifts and an effort to move away from low-margin deals), core router product transitions, and low-end edge router share loss (likely to Juniper).Also: Cisco estimates the government shutdown impacted FQ1 U.S. federal sales by $50M, and the political environment in China is said to remain "challenging."CSCO now -9.8% AH. Also off: JNPR -2.8%. FNSR -1.3%. More names could sell off in time.