Cisco's (NASDAQ: CSCO) stock recently tumbled after the company followed up its fourth-quarter earnings beat with downbeat guidance for the first quarter.
The networking hardware and software giant's revenue fell 9% annually to $12.2 billion, clearing estimates by $60 million but marking its third straight quarter of declining revenue. Adjusted earnings per share dipped 4% to $0.80, but still beat expectations by $0.06.
Those growth rates were weak, but it was likely Cisco's guidance that sparked the sell-off. It expects its first-quarter revenue to decline 9%-11% annually, missing expectations for a 7% decline, and for its adjusted EPS to fall 15%-18%, well below the consensus forecast for a 10% drop.