Cisco's EPS guidance in-line, but orders remain under pressure

|About: Cisco Systems, Inc. (CSCO)|By:, SA News Editor

Cisco (CSCO) guides on its CC for FQ3 EPS of $0.47-$0.49, in-line with a $0.46 consensus. The company also reiterates FY14 EPS guidance of $1.95-$2.05 (consensus is at $1.98).

However, the networking giant adds its orders fell 4% Y/Y for the second quarter in a row. The main culprits: Switch orders fell 6%, router orders 5%, and (thanks to plunging set-top sales) service provider video orders 20%.

Switch sales (39% of product revenue) fell 12% Y/Y in FQ2, and router sales (21% of product revenue) fell 11%. SP video fell 22%, and collaboration (videoconferencing, WebEx) 7%; the latter could be a negative for Polycom (PLCM).

Data center (UCS server) revenue only rose 10% after growing 44% in FQ1. However, Cisco asserts orders growth was in the mid-30s range. Wireless (dominated by Wi-Fi), another growth area in recent quarters, fell 4%. Aruba (ARUN) -2% AH in response.

Americas orders -5%, EMEA -2%, Asia-Pac -5%. Enterprise -2%, SMBs and public sector +1% each.

CSCO now -3.8% AH.

More on Cisco