Cisco shares tumble 6% after earnings forecast misses expectations

RESEARCH TRIANGLE PARK – Cisco shares fell 6% in after-hours trading Wednesday after the tech giant forecast earnings that fell short of Wall Street expectations.

But CEO Chuck Robbins was upbeat. And the company did rebound to report growth.

“Cisco reversed a five-quarter streak of revenue declines, posting nearly 7% growth year over year, although the quarter included 14 weeks, rather than 14 in the year-ago quarter,” CNBC reported.

“Cisco had a great quarter with strong demand across the business,” Cisco’s chair and CEO said. “We are confident in our strategy and our ability to lead the next phase of the recovery as our customers accelerate their adoption of hybrid work, digital transformation, cloud, and continued strong uptake of our subscription-based offerings.”

The quarter ended May 1.

“We executed well with strong product orders, and solid growth in revenue, net income, and EPS,” added CFO Scott Herren. “Our investments in innovation and accelerated shift to more software offerings and subscriptions led to double-digit growth in deferred revenue, remaining performance obligations and higher levels of recurring revenue.”

For details, check out this report from Bloomberg news.

Cisco operates one of its largest corporate campuses in RTP and employs several thousand people there. It’s announced three acquisitions in recent days as Robbins continues to refocus the firm toward services and away from hardware.

Read the full earnings report online.