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Cisco issues light guidance, cutting 4K jobs; shares now -10.3% AH

  • Cisco (CSCO) guides on its FQ4 CC for 3%-5% Y/Y FQ1 revenue growth, and FQ1 EPS of $0.50-$0.51. That's somewhat unfavorable to a consensus for 4.9% Y/Y rev. growth and EPS of $0.51.
  • Total orders rose 4% Y/Y in FQ4, less than rev. growth of 6%. Americas orders +5% and EMEA +6%, but Asia-Pac/Japan -3%, thanks in part to a 6% drop for China. Cisco says it's seeing an "improving" but nonetheless "mixed" macro environment.
  • The company also announces it's cutting 4K jobs (5.5% of its workforce), and expects to record $550M in pre-tax charges related to the move.
  • FQ4 results, details
Comments (3)
  • StayCool
    , contributor
    Comments (78) | Send Message
     
    I can't help but think that down 10.3 % AH is a bit of an overreaction.
    John Chambers appears to understand that the technology environment ahead is going to be more price competitive. Keeping Cisco's cost structure lean while continuing to introduce new products and make strategic bolt on acquisitions makes sense!
    Like I said down 10.3 seems extreme and overdone!! Especially with a more positive tone out of Europe.
    14 Aug 2013, 05:38 PM Reply Like
  • CanadianChet
    , contributor
    Comment (1) | Send Message
     
    Any downward movement of the stock after such results needs to be questionned notwithstanding the layoffs. Seems to me managment is being prudent in recognizing what is ahead re the economical crystal ball and are taking steps to maintain stockholder value. Am sure this has been thought through and is not an over-reaction by aforesaid management; they are only trying to protect us, the shareholders!
    15 Aug 2013, 12:56 AM Reply Like
  • thatsthetruthofit
    , contributor
    Comments (85) | Send Message
     
    As long as its not something systemic like deteriorating assessment of their technology by industry analysts, or a lack of solution in the hot software defined networking market.
    15 Aug 2013, 02:10 PM Reply Like
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