Despite better than expected third quarter earnings, Cisco is getting hammered in after hours trading – off over 8% after the company issued horrendous guidance and announced the layoff of 1,100 jobs, adding to it’s previously announced cut of 5,500 last August.
The company reported a net income of $2.52 billion and earnings of .60c / share on sales of $11.94 billion after adjusting for stock-based compensation and other effects. Analysts were expecting .58c / share on sales of $11.89 billion.
But who the fuck cares about that?
CEO Chuck Robbins just guided way lower, predicting a drop of 4-6% vs. a 1% expected decline, with EPS estimates coming in light as well. Robbins is pointing to a slowdown in federal govt. spending as a ‘large factor,’ as well as a ‘lack of budget visibility.’
Sorry CSCO – looks like Trump has put the brakes on the bottomless govt. surveillance pit you guys have been leeching off for the better part of a decade.
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