Analysts offered mixed assessments of Cisco Systems after the San Jose networking giant’s earnings missed their projections on Wednesday and the company warned that its next-quarter sales would suffer an 8 percent to 10 percent drop from the same period last year.
S&P Capital IQ lowered its stock rating on Cisco from “buy” to “hold,” and Raymond James called the company’s financial projections “shockingly poor.”
Some analysts also worried that the grim forecast could bode ill for chipmakers, particularly Xilinx, which is a big supplier of circuits to Cisco.
Cisco’s shares were down 12 percent in early trading Thursday. But not everyone was voicing doom.
Analysts at Baird Equity Research said they considered lowering their stock rating of Cisco, but concluded the company’s problems were only “transitory.”
And Technology Business Research said it “expects Cisco’s revenue will improve steadily throughout 2014.”
Photo by Paul Sakuma, AP