geez, this is some real insight:
Credit Suisse First Boston cut its fiscal third-quarter revenue expectations
for Cisco (CSCO:Nasdaq - news) and lowered its price target on the
networking equipment maker, citing the mounting evidence that the slowing
U.S. economy is having a worse-than-expected effect on technology
companies.
The firm expects Cisco's revenue to fall 5% to 10% sequentially. Credit
Suisse also projected earnings of 11 cents a share, below the 35-analyst
consensus compiled by First Call/Thomson Financial of 14 cents. The firm
cut Cisco's price target to $40 from $45, but reiterated its buy rating on the
company.
Shares of Cisco fell 88 cents, or 3.3%, to $26.06 in recent Nasdaq trading.
The firm also said it was cutting its fourth-quarter earnings estimate to 13
cents a share from 14 cents, and lowering the full-year projection to 60 cents
from 63 cents. Wall Street is calling for the company to earn 15 cents in the
fourth quarter and 65 cents for the year. CSFB also dropped its 2002
prediction to 75 cents a share from 79 cents, which is below the 81-cent
consensus estimate.
Cisco missed analysts' earnings projections by a penny for the second
quarter, reporting a profit of 18 cents a share. In a conference call after the
numbers were released, the company said revenue growth would grind to a
halt in upcoming quarters as a result of the industry slowdown.
In the call, John Chambers, the company's chief executive, said third-quarter
revenue would match second-quarter revenue in the best-case scenario, but
could possibly fall 5%. He also said fourth-quarter revenue should be flat
sequentially. Cisco reported disappointing revenue of $6.72 billion in the
second quarter.
The company said revenue growth for the year should be about 40%, short of
the 45% growth the company has averaged over the past five years. |
