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Why Cisco Systems, Inc. Is Down Over 4% After Hours

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Cisco Systems, Inc. (CSCO) is down over 4% in the after-hours trading session despite releasing better-than-expected Q3 2018 results and providing Q4 guidance that satisfied expectations.

The company reported revenue of $12.46 billion and non-GAAP EPS of $0.66, both of which narrowly beat estimates of $12.43 billion in revenue and $0.65 in non-GAAP EPS.

Cisco’s guidance for the fourth quarter also came in-line with expectations, as it called for revenue growth of 4-6% (implying revenue of about $12.62 billion-$12.86 billion) and non-GAAP EPS of $0.68-$0.70, compared with analysts’ expectations of $12.72 billion in revenue and $0.69 in non-GAAP EPS.

It appears as if the market wanted a bigger beat, or a beat paired with better-than-expected outlook on the fourth quarter, but either way, a 4% decline seems a bit overdone.

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