Cisco shares hit by outlook fears

Cisco shares hit by outlook fears

 

Cisco chief executive John Chambers tried to reassure investors that the performance was "solid"

Shares in IT networking giant Cisco Systems have fallen sharply following disappointing first quarter results. 

Net income rose, by 8% to $1.8bn (£1.1bn; 730m euros), but investors were expecting more.
They were also rattled by comments about the outlook for the firm, which its chief executive said faced "unusual uncertainty".
Cisco shares fell 13% in after-hours trading in New York, and by as much as 12% in morning trading in Frankfurt.
However, Cisco's chief executive John Chambers described the results as "solid", despite the "challenging economic environment".
Investors consider Cisco as a bellwether, reflecting the health of companies in the sector as it dominates the market for the technology behind corporate IT networks.
Some analysts fear that it is lagging behind faster-growing rivals.
"If you look at what Cisco's peers have said, as well as other data points in the supply chain, they've been arguably more upbeat," said Kaufman Bros analyst Shaw Wu.
However, Mr Chambers said the key factor was the economy not more intense competition.
"Our execution in areas we can control and influence speak to the success and relevance of the company's strategy."