By Dhirendra Tripathi
Investing.com – Cisco (NASDAQ:CSCO) shares were down over 5% in Thursday’s premarket as the company’s guidance on EPS and margins for the fourth quarter left traders disappointed.
The management pointing out to supply chain challenges putting pressure on margins also weighed on the sentiment.
Adding to the bleakness was the company showing zero growth in orders from enterprises even as each of the other three segments, namely public sector, commercial and service providers, booked a double-digit rise.
Market players expected better from the IT networking giant after a good third quarter ending May 1.
Cisco expects fourth quarter revenue to show 6% to 8% year-on-year growth. Non-GAAP operating margin is seen between 32% and 33% and non-GAP EPS in the range of $0.81 to $0.83.
The company’s third quarter revenue grew 7% year-on-year to $12.8 billion. Net income was up 3% to $2.9 billion and diluted EPS rose 5% to $0.68.