Cisco cuts results forecast on China lockdowns, Ukraine crisis; shares plunge

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:Cisco Systems Inc cut its full-year forecast for both adjusted profit and revenue on Wednesday as COVID lockdowns in China and the war in Ukraine hurt its business in the third quarter.The network equipment maker's shares slumped 17 per cent in extended trading.Higher costs and component shortages hav

:Cisco Systems Inc cut its full-year forecast for both adjusted profit and revenue on Wednesday as COVID lockdowns in China and the war in Ukraine hurt its business in the third quarter.Higher costs and component shortages have limited Cisco's ability to meet strong demand from companies moving to hybrid work models, while weakness in European markets due to the Ukraine crisis also pressured the business.

The company said it expects a 2 per cent to 3 per cent revenue growth in fiscal year 2022, compared with an earlier forecast of 5.5 per cent to 6.5 per cent. Its adjusted profit expectations of $3.29 to $3.37 per share were also lower than the $3.41 to $3.46 per share forecast earlier. Revenue was flat year-over-year at $12.8 billion in the quarter ended April 30, missing analysts' estimate of $13.34 billion, according to IBES data from Refinitiv.

 

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