Cisco Misses The Mark As Orders Slow On The Strength Of US Dollar

Cisco Profits

Cisco Systems missed analyst estimates for adjusted profit and revenue growth for the second quarter. The company cited a slowdown in order growth and weakness in its enterprise business outside the United States.

Shares of Cisco fell 5% to $26.41 in extended trading on Thursday.

Following a common theme among other company’s who recently reported earnings, the company also cited a strong dollar for a slowdown in demand for its enterprise products in Asia-Pacific, Canada, and Latin America.

“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 Officer Chuck Robbins.

Cisco said it expected adjusted profit of 53 to 55 cents and revenue to be flat to up 2 percent, which translates into $11.94 billion to $12.17 billion.

Analysts were expecting a profit of 56 cents on revenue of $12.55 billion.

 

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