Despite reporting better-than-expected Q1 17 fiscal earnings, shares of Cisco systems have traded down to a 3-month low of $30.00 in late NY trade.
The tech giant announced Q1 EPS of 61 cents per share versus expectations of 59 cents per share on reported revenue of $12.4 billion, which beat the street’s expectation of $12.33 billion in revenue.
The share price has dropped due weaker forward guidance, as the company believes the current quarter revenue could drop 2% to 4% compared to the year-ago quarter. Analysts had forecasted a 2% rise in revenue over the same period. As a result, Cisco is expecting EPS to drop into the 55 to 57 cents per share range.
With the company expecting weaker growth, the share price could slip back to the $26.50 support level last traded in early May.