RESEARCH TRIANGLE PARK – Tech giant Cisco – one of the largest employers in RTP with several thousand workers – saw its stock (Nasdaq: CSCO) drop some 14% in trading Thursday after cutting its earnings and revenue forecast on Wednesday after the markets closed.
Revenues are expected to fall between $12-6-12.8 billion in the current quarter, which is well under Wall Street expectations f more than $14.2 billion, says Bloomberg.
Earnings are forecast to be 82-84 cents per share, short of the 99 cents expected, Bloomberg adds.
Shares traded under $47 in early Thursday morning trading.
However, revenues ($14.67 billion) and earnings ($1.11 per share) for the recently ended quarter topped Street estimates, says CNBC.
“We had a solid start to fiscal 2024 with the strongest Q1 results in our history on both revenue and profitability,” said Chuck Robbins, CEO of Cisco. “We are confident in the foundational strength of our business and future growth opportunities fueled by AI, Security, Cloud, and Observability.”