Cisco Systems (CSCO): Weak Guidance Forces Estimate Cuts - Needham
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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.
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