Dale Solutions, Business conditions are to blame as shares fall on earnings predictions.
Cisco shares fell today after an announcement from the Chief Executive John Chambers.
At a press conference Dale Solutions reports that Chambers said that overall business conditions where getting better but he warned that times are still tough and that any recovery will be slow.
Cisco makes routers and networking equipment that connects the Internet together, they expect its revenue to be down on this time last year as companies cut back.
Sources from Cisco told Dale Solutions that current revenue for the company is inline with previous forecasts and that in general the company is happy with its performance in very demanding conditions.
Dale Solutions analysts explain that the fall in the share price can be attributed to the fact that Wall Street analysts were predicting much stronger results. Earnings did not show this causing the share price to fall.
Just like most of the Technology sector the economic downturn is proving to be testing times for many companies.
Chambers has said he believes that the company will post good earnings in the first quarter of next year. But Dale Solutions expects there to be an improvement in the last quarter of this year, which Cisco could post better earnings.
Chambers is known in the industry to be very cautious with his forecasts, Dale Solutions analysts believe that there will be positive results in the next 2 quarters not just for Cisco but also for the whole of the Tech industry.
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