Cisco Plunges In AH Session After Major Cut To Guidance On Earnings Call, Sees Up To $1 Billion Revenue Shortfall In Q2
The conference call is still ongoing, but the company has dropped a bombshell by cutting revenue guidance by 10%: it now anticipates a 3-5% revenue growth from Q2 last year, which was $9.8 billion, or therefore a range of $10.1-$10.3 billion. As the estimate on the street is for $11.1 billion for the next quarter, the firm just whacked up to $1 billion of the top line. Weakness attributed to US Cable segment, public spending, and Europe. In other words, everything. CSCO also sees Q2 EPS 32c-35c vs. consensus 42c. In other words, the second tech bubble may just have popped although don't count out the Fed-backed momos just yet. The stock is down 13% as of this posting, and the futures are plunging. We will bring you the call transcript asap.
More from Fly on the Well:
- Cisco sees FY11 revenue growth of 9%-12% FY11 consensus is $45.28B.
- Guidance taken from Cisco's Q1 earnings conference call. :theflyonthewall.com
- Cisco sees Q2 revenue up 3%-5% YoY, Consensus is $11.08B.
Here is why we have the over on Brian Sack announcing the imminent formation of Cisco Lane I, aka the Sack Put on, cue Tepper, EVERYTHING. Or a far simpler explanation: Friday's QE2 inaugural POMO edition will be known as the CISCOMO.