Why Cisco Stock Dropped After Earnings Today
The Motley Fool
Cisco beat earnings expectations with $1.04 EPS on $15.3B in sales and reported 18% YoY product order growth, but stock fell 10.9% due to declining profit forecasts. Despite strong sales growth guidance, the company warned of flat-to-declining earnings in Q3 and full-year due to rising memory costs, causing investors to view the stock as overvalued at 25x earnings with stagnant profit growth.
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