Cisco's Earnings Won't Be Pretty
Networking hardware giant Cisco Systems (NASDAQ: CSCO) expects sales to decline during the fourth quarter, results for which will be released on Wednesday after the market closes. The company's guidance calls for a 4% to 6% year-over-year revenue decline, driven by weak product orders from some large customers and emerging markets, uncertainty delaying orders from the U.S. federal government, and a continuing headwind from shifting its business toward subscriptions.
While the first two issues are likely temporary, the shift to subscription software and services will have longer-lasting effects. Cisco announced during its financial analyst conference in June that it now expects to produce revenue growth of just 1% to 3% annually over the next three to five years, down from a previous outlook of 3% to 6% annual growth. The software business is expected to grow by 12% to 15% annually, but Cisco's focus on subscription software will push revenue into the future, hurting near-term results.
Image source: Cisco Systems.https://americas.thecisconetwork.com/themes/new/img/header/cisco_homepage_icon_logo.png
Source: Fool.com
Cisco Systems Inc. Aktie
Die Cisco Systems Inc. Aktie verzeichnet mehrere Buy-Einschätzungen, was auf eine positive Stimmung hindeutet.
Das Community-Kursziel von 53 € für Cisco Systems Inc. deutet auf ein leicht positives Wachstumspotenzial gegenüber 47.49 € hin.
