Cisco lowers sales forecast: IT spending under scrutiny - financial expert analyzed

Cisco lowers sales forecast: IT spending under scrutiny - financial expert analyzed

According to a report by www.finanzen.net, network equipment supplier Cisco has lowered its sales forecast for the current financial year after just the first three months. The decline in sales is attributed to a slowdown in new orders. New revenue expectations are now between $53.8 billion and $55 billion, compared to previous forecasts of $57 billion to $58.2 billion.

This development could be a signal that companies are rethinking their IT spending. Cisco is trying to get more business from its customers by providing services after the network technology has been sold. In the last fiscal quarter, Cisco increased sales by eight percent to $14.7 billion. Nevertheless, Cisco shares fell 9.83 percent to $48.04 in NASDAQ trading.

DZ Bank downgraded Cisco from “Buy” to “Hold” after quarterly figures and lowered the fair value from $59 to $50. The excellent start to the new 2023/24 financial year was overshadowed by the significant decline in incoming orders and the reduced outlook. This caused Cisco's stock price to fall.

The slowdown in new orders and the lowered sales forecast could have a negative impact on the market and the financial industry. Investors and companies could be unsettled, which could lead to more cautious investment decisions. The downgrade of Cisco by DZ Bank and the reaction of share prices show that these developments are already having an impact on the financial industry. It remains to be seen how the situation will develop in the coming quarters.