Cisco Rings a Worrisome Bell (US.CSCO) - 20 mai 2022

The tech heavyweight known best for its networking and security equipment and software said Wednesday that revenue for its fiscal third quarter ended April 30 was flat year over year at $12.8 billion. That was about 4% below Wall Street’s consensus forecast and is only the second time in at least five years that the company’s revenue has missed analysts’ projections, according to FactSet. And that wasn’t the only bad news: The midpoint of Cisco’s projection for the current quarter implied revenue of about $12.7 billion, some 8% shy of Wall Street’s target. 

The revelations took Cisco’s stock price down nearly 14% on Thursday, the stock’s worst single-day decline since February 2011, when another disappointing report sank the shares by 14%. The difference this time is that the shock appears to have nothing to do with demand. Cisco’s product backlog actually grew by about $1 billion from the second quarter, while reported product revenue grew only about $95 million in that time.

https://www.wsj.com/articles/cisco-rings-a-worrisome-bell-11652956200