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Cisco Systems Inc. may have topped analyst expectations for the most recently completed quarter late Wednesday, but the networking giant’s weak outlook weighed on shares after hours.
Cisco CSCO, +0.19% shares dropped 5.5% after hours, following a 0.2% rise in the regular session to close at $48.46.
Cisco expects adjusted fiscal second-quarter earnings of 75 cents to 77 cents a share on a 5% to 3% decline in year-over-year revenue. Analysts surveyed by FactSet expect earnings of 79 cents a share and revenue of $12.75 billion, which would be a 2.4% increase from the year-ago quarter.
Read: Cisco earnings: results from the network-gear maker may refresh fears of a tech-spending slowdown
The company reported fiscal first-quarter net income of $2.93 billion, or 68 cents a share, compared with $3.55 billion, or 77 cents a share, in the year-ago period. Adjusted earnings were 84 cents a share.
Revenue rose to $13.16 billion from $13.07 billion in the year-ago quarter.
Analysts had forecast earnings of 81 cents a share on revenue of $13.08 billion.
As of the close, shares are up nearly 12% this year, as the S&P 500 index SPX, +0.07% has gained 23% and the Dow Jones Industrial Average DJIA, +0.33% — which counts Cisco as a component — has increased 19%.
Of the 28 analysts who cover Cisco, 16 have an overweight or buy rating on the stock and 12 have a hold ratings, with an average price of $54.91.
