The Cisco logo is displayed, during the GSMA's 2023 Mobile World Congress (MWC) in Barcelona, Spain March 1, 2023.
REUTERS/Nacho Doce/File Photo Acquire Licensing RightsNov 16 (Reuters) - Cisco (CSCO.O) tumbled more than 12% on Thursday after cuts to its annual forecasts raised fears that excess inventory with customers was sapping new orders in its mainstay networking equipment business.
Cisco blamed the weakness on a slowdown in orders in the first quarter, saying "customers are currently focused on installing and implementing products in their environments".
"Now, they've exhausted their excess backlog and the business is stepping back down to lower revenue run rates," Jefferies analyst George Notter said in a note.
Cisco trades at more than 13 times its 12-month forward earnings estimates, compared with the industry median of 10.98.
Persons:
Nacho, Jefferies, George Notter, Notter, Morningstar, William Kerwin, Arsheeya, Pooja Desai
Organizations:
Cisco, Congress, REUTERS, Thomson
Locations:
Barcelona, Spain, Bengaluru