down 11% after the networking hardware company issued weak forward guidance.
The company reported earnings per share of $1.11 U.S. versus $1.03 U.S. per share that was expected for what was its fiscal first quarter.
Revenue amounted to $14.67 billion U.S. compared to $14.61 billion U.S. that was forecast on Wall Street. Cisco’s revenue in the quarter rose 7.6% from a year earlier.
However, despite the better-than-expected results, Cisco reported that its new product orders slowed down during the quarter.
The company estimates that one or two quarters of its shipped products are still waiting to be implemented, leading to the reduced orders.
Consequently, Cisco forecast $0.82 U.S. to $0.84 U.S. in earnings per share on $12.6 billion U.S. to $12.8 billion U.S. in revenue for the current fiscal second quarter.
The guidance implies a 6.6% revenue decline and was below the $0.99 U.S. in earnings and $14.19 billion U.S. in revenue that Wall Street anticipated.
Cisco is also in the process of acquiring data analytics software maker Splunk (SPLK) for $28 billion U.S.
On an earnings call with media and analysts, Cisco executives said that they can likely win more than $1 billion U.S. worth of orders for artificial intelligence (A.I.) infrastructure from cloud providers in the company’s 2025 fiscal year.
Prior to today (Nov. 16), the stock of Cisco had risen 20% over the last 12 months to trade at $53.28 U.S. per share.