NEW YORK (CNNMoney) -- Shares of Cisco Systems tumbled after the networking giant released a disappointing sales outlook for the current quarter.
Cisco (Fortune 500) stock fell nearly 7% in premarket trading Thursday, after executives said on a post-earnings conference call late Wednesday that the company expects sales to grow only 2-5% in its fiscal fourth quarter.,
Analysts polled by Thomson Reuters were expecting 7% revenue growth in Cisco's fourth quarter, which ends in July.
Investors seized on the downbeat outlook, punishing the stock and brushing off a solid earnings report for the current quarter.
Cisco's earnings rose 20% over the year to $2.6 billion, or 48 cents per share, excluding one-time charges for the quarter that ended April 31. The company logged $11.6 billion in sales. That was almost exactly in line with what analysts had expected.
Last year, Cisco took strong measures to restructure the company and focus on business-crucial technologies. Those moves included streamlining the company's organizational structure, cutting 6,500 jobs last July and ditching the Flip video camera business last April.
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