Deutsche: "While our checks noted emerging markets weakness, we were clearly wrong on magnitude of the order weakness." The firm thinks Asian/emerging markets weakness, also seen in reports from IBM, Alcatel-Lucent, and others, could take "several quarters to improve."
Wedbush argues Cisco's issues aren't entirely macro-related. "We believe the challenges Cisco faces with [carrier] product transitions raise concerns about the company's ability to manage one of the more evolutionary changes in networking with the new [Insieme] SDN switching platform."
Goldman, a long-time Cisco bull, thinks only 1/3 of the company's revenue guidance shortfall was due to macro issues. It chalks up the rest to company-specific issues such as product transitions, low-end edge routing share losses to Alcatel and Juniper, and major set-top declines. The firm has lowered its estimates through FY16.
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