Cisco Systems (CSCO): Weak Guidance Forces Estimate Cuts - Needham
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Needham & Company analyst, Alex Henderson, reiterated his Hold rating on shares of Cisco (NASDAQ: CSCO) after weak guidance compels the analyst to cut estimates for the January quarter and later periods. Service revenues are likely flat to up slightly Q-Q and the guidance implies a 6-10% decline Q-Q in Product Sales.
The bulk of the weakness was concerns about Service Provider spending in the US and Europe and Enterprise sales internationally. The strong dollar, economic macro concerns and Service Provider M&A and spending priorities were offered as explanations. The analyst thinks Cisco also has significant challenges to Switches and Routers from new competitors and from new technologies.
Shares of Cisco closed at $31.57 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Finisar (FNSR) PT Raised to $44 at Needham & Company, Estimates Raised Sharply
- Jefferies Raises Price Target on Finisar (FNSR) to $37 Following 2Q Beat and Raise
- Jefferies Adjusts Estimates on Ciena (CIEN) - PT to $29
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesNeedham & Company
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!