Cisco dives 12% after giving disappointing earnings guidance, but BofA defends it as 5G is poised to drive growth in 2021 (CSCO)

Reuters

• Cisco dived as much as 12% on Thursday after the company reported fiscal fourth quarter earnings that beat analyst estimates, but announced disappointing guidance.
• The networking company saw a double-digit decline in its core business amid the COVID-19 pandemic during the quarter, while its software subscription business continues to grow as an overall percentage of revenue.
• Additionally, CFO Kelly Kramer announced her retirement, but will remain with the company until a replacement has been found.
• Cisco will look to cut up to $1 billion in costs through a reorganization that will result in job cuts and early retirements for some employees.
• Bank of America defended Cisco in a note on Thursday, as it looks to 5G, WiFi 6, and other technologies to drive growth into 2021.
• Visit the Business Insider homepage for more stories.

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Cisco dived as much as 12% to $42.38 on Thursday after the networking company reported disappointing revenue guidance into the next quarter, signaling that weakness stemming from the COVID-19 pandemic hasn't completely vanished.

Particularly, the pandemic has hurt Cisco's enterprise and commercial business as customers continue to "delay their purchasing decisions in certain areas," CEO Chuck Robbins said on its earnings call. See the rest of the story at Business Insider

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