Cisco cuts results forecast on China lockdowns, Ukraine crisis; shares plunge -Breaking
(Reuters) -Cisco Systems Inc reduced its revenue and adjusted profit forecasts for the full year on Wednesday due to COVID lockdowns and Ukraine’s war.
In extended trading, the network equipment company’s stock slumped by 17%
Cisco (NASDAQ) has struggled to keep up with strong demand from hybrid-work model companies. The company also suffered from higher costs and shortages of components. In addition, the Ukraine crisis has impacted the European market.
It expects to see a 2 to 3 percent revenue increase in 2022, up from a 5.5% to 6.5% forecast.
The adjusted profit forecasts of the company were lower at $3.29 to 3.37 per share than those for $3.41 and $3.46 earlier.
According to Refinitiv’s IBES data, revenue was $12.8 billion year-over-year. This is below analysts’ estimates of $13.34 trillion.