What's Going On With Cisco Systems Shares Today?
Portfolio Pulse from Lekha Gupta
Cisco Systems Inc (NASDAQ:CSCO) shares dropped in premarket trading after the company announced lower-than-expected Q3 and FY24 guidance and a 5% workforce reduction. Despite beating Q2 EPS and sales estimates, Cisco's future revenue and EPS forecasts fall below analyst expectations. The company also plans to incur about $800 million in pre-tax charges due to the layoffs but raised its quarterly dividend by 3%.
February 15, 2024 | 3:27 pm
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NEGATIVE IMPACT
Cisco Systems Inc shares fell after announcing lower-than-expected future guidance and a 5% workforce reduction, despite a Q2 earnings beat and a dividend increase.
The negative short-term impact on Cisco's stock price is primarily due to the announcement of lower-than-expected future earnings guidance and a significant workforce reduction. These factors typically lead to investor concern about the company's future growth and profitability, overshadowing the positive Q2 earnings beat and dividend increase.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100