Cisco (NASDAQ: CSCO) posted a reasonable improvement in earnings for its most recently reported quarter–fiscal first year profit was $1.93 billion compared to $1.79 billion in the same period a year ago.
But, CEO John Chambers gave a remarkably poor assessment of the big tech company’s future. Cisco expects revenue in the current quarter to rise as little as 3%. This sent its stock down 15% which destroyed $30 billion in market cap.
Several securities analysts who cover the company insulted shareholders by downgrading the stock after the its steep drop. These analysts are close to Cisco, but did not see any of the trouble coming.
The list of research firms that missed the call include Goldman Sachs, Deutsche Bank, William Blair, and Wunderlich. The actions give securities analysts yet another black eye.
Douglas A. McIntyre