Cisco shares plunge on weak outlook

@CNNMoneyTech May 10, 2012: 8:21 AM ET

NEW YORK (CNNMoney) -- Shares of Cisco Systems tumbled after the networking giant released a disappointing sales outlook for the current quarter.

Cisco (CSCO, 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. To top of page

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.