Cisco second-quarter forecast misses on order slowdown

Net income rose to $2.43 billion, or 48 cents per share, in the first quarter ended October 24, from $1.83 billion, or 35 cents per share, a year earlier. It has a market cap of 142338.45 with a P/E of 15.99, a P/S of 2.9 and earnings per share this year of 17.40%. For the week, the shares have posted returns of -2.18%.A block trade registered during the day has revealed $10.78 million in upticks and $86.78 million in downticks. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Cisco has argued that many companies don’t have the expertise or inclination to build their own infrastructure, and that its comprehensive networking systems are still central to the industry.

Sales climbed 4.3 percent in fiscal 2015, and revenue growth has not topped 8 percent for five-straight years.

Currently, Cisco Systems has a Zacks Rank #3 (Hold), but it is subject to change following the release of the company’s latest earnings report. “We are still a $3 billion firm and have over $3 billion in cash”, Chen stated in an interview Friday with Bloomberg TV. It has 5212.12 shares outstanding and Institutions own about 24.50%.

“Our guidance reflects lower-than-expected order growth in [the first quarter], driven largely by the uncertainty of the macro environment and currency impacts”, said Chief Executive Chuck Robbins, in prepared remarks.

Separately, TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of A+.

Cisco will be targeting 0-2 percent growth in the second quarter of fiscal 2016.

Cisco Systems beat Wall Street estimates Thursday, but offered a weak forecast for future earnings, sending shares down more than 5 percent in after-hours trading. (NYSE:VZ) Inc. and AT&T Inc., unveiled the Binge On feature that lets subscribers watch videos from selected providers including Verizon’s go90 service without having to pay extra in data charges. Cisco’s consensus analyst price target ahead of this report was $31.14 and its 52-week range is $23.03 to $30.31. The company had revenue of $12.68 billion for the quarter, compared to the consensus estimate of $12.65 billion. In last year’s first quarter, Cisco reported earnings of 54 cents per share and $12.2 billion in sales. A close below $27 on an earnings miss would negate the bullish setup. Mcgeary Roderick C sold 15,000 shares worth $429,750. The value of Cisco architecture is its emphasis on embedding security spanning the extended network – including routers, switches and the data center – closing gaps across the attack continuum and significantly reducing time to detection and remediation.

Meanwhile, Cisco is experiencing faster growth in newer kinds of products, including conferencing hardware and software.