Cisco Tumbles Most in 18 Months on Weaker Sales Forecast
- Quarterly outlook comes in well short of analysts’ estimates
- Corporate customers are keeping tight rein on tech spending
This article is for subscribers only.
Cisco Systems Inc., the largest maker of computer networking equipment, tumbled the most in 1 1/2 years on Thursday after its revenue forecast raised concerns that corporations are reining in their technology spending.
Sales will be $12.6 billion to $12.8 billion in the period ending in January, the company said in a statement Wednesday. That was far short of the $14.2 billion analysts had estimated. Excluding certain items, profit will be 82 cents to 84 cents a share, compared with a prediction of 99 cents.