Cisco stock slides toward worst day since 2011 after earnings

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Cisco Systems Inc. shares are off 11.6% in Thursday morning trading after the company reported declining fiscal-fourth quarter revenue and gave a downbeat outlook for the current period. The stock is on track for its worst single-day percentage drop since Feb. 10, 2011, when it fell 14.2%. “Guidance for the October quarter was the issue,” wrote Barclays analyst Tim Long, “raising concerns that CSCO’s relative resilience thus far may be waning as the effects of the pandemic carry on into FY21.” He wrote of his concerns about Cisco’s commercial order trends as the company continues to see spending delays. Long has a neutral rating and $50 price target on the stock. RBC Capital Markets analyst Robert Muller kept his outperform rating on the stock and bumped his price target up to $48 from $47 but warned of “choppiness” in the near term. “While we believe favorable tailwinds and leading positioning across its business lines set the stage for a favorable re-emergence from the pandemic, uncertainty regarding timing leads us to push out our expectations for growth,” Muller wrote. Cisco shares have increased 1.5% over the past three months as the Dow Jones Industrial Average has gained 20%.
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