Tariffs, China sales weigh on Cisco outlook, shares slide
Cisco Systems Inc said on Wednesday that impending U.S. tariffs and Chinese cust...
FILE PHOTO: A man passes under a Cisco logo at the Mobile World Congress in Barcelona, Spain February 25, 2019. REUTERS/Sergio Perez
Chief Financial Officer Kelly Kramer said in an interview that Chinese companies were dropping Cisco gear and instead buying hardware from domestic Chinese companies.
It estimated adjusted earnings of 80 cents to 82 cents per share in the first quarter of 2020, below analysts’ forecast of 83 cents.
Cisco said U.S. tariffs on Chinese-made goods would soon hit its products, dragging down margins in its fiscal first quarter. U.S. President Donald Trump said this week he would delay a 10% tariff on some Chinese-made goods until December. But Kramer said most of Cisco’s goods were not part of the temporary reprieve and face tariffs next month.
Since taking the helm in July 2015, CEO Robbins has emphasized growth areas such as the cloud, Internet of Things and cybersecurity through acquisitions.
Total revenue rose 4.5% to $13.43 billion and beat the average analyst estimate of $13.39 billion.Read more: Reuters Top News
cisco can overcome
Cisco drops on poor guidance, says China business dropped 25%Cisco beat in its key Infrastructure Platforms segment, but the company's guidance for the next quarter came in below the levels analysts were anticipating. Ericardo4 wait, so we operate in a global economy and hurting our trade partners also hurts US companies? Impossible ... Looks like Chinese tech boom is over...
Cisco drops more than 7% after soft guidanceCisco beat in its key Infrastructure Platforms segment, but the company's guidance for the next quarter came in below the levels analysts were anticipating.
The charts are pointing to a rally for Cisco on earnings, says traderCisco is reporting earnings Wednesday, and one trader says the stock's about to bounce back.
Stocks making the biggest moves after hours: Cisco, NetApp and VipshopSee which stocks are posting big moves after the bell.
Commerce Secretary Wilbur Ross: Tariff delays were not a trade 'quid pro quo' with ChinaCommerce Secretary Wilbur Ross appears on 'Squawk Box.' This is why all the lies, all 12,000 of them matter. When the administration speaks on mundane policy decisions they’ve so thoroughly torched their credibility that everything, literally everything requires us to suspend our disbelief to take them at their word Politicians are crazy who threatened tariffs and affected financial stocks market plummeting So let's ruin all other seasons though
Trump backs off China tariff plan with delays for cellphones, laptopsPresident Donald Trump on Tuesday backed off his plan to impose 10% tariffs on r... Why does Donald Trump want Americans to pay more for Christmas gifts when China is supposedly paying the tariffs? Delayed bad policy still bad policy. Losing support right. What a joke!