Cisco Shares Plunge 17% on Q3 Revenue Miss and Disappointing Outlook
2022.05.19 00:01
Cisco Shares Plunge 17% on Q3 Revenue Miss and Disappointing Outlook
Cisco Systems (NASDAQ:CSCO) shares dropped around 17% after-hours Wednesday following the company’s Q3 earnings results. While EPS of $0.87 came in better than the consensus estimate of $0.86, the revenue of $12.8 million (flat year-over-year) missed the consensus estimate of $13.34 million.
Product order growth was up 8% year-over-year. Total Annualized Recurring Revenue (ARR) grew 11% year-over-year to $22.4 billion.
The company expects Q4/22 EPS in the range of $0.76-$0.84, below the consensus of $0.92, and revenue growth in the range of (5.5)%-(1)%.
For the full 2022-year, the company expects EPS in the range of $3.29-$3.37, compared to the consensus estimate of $3.44. Revenue is expected to grow 2%-3% year-over-year.
Shares of Cisco were down 24% year-to-date going into the results.
By Davit Kirakosyan
