Cisco Systems is still wrestling with soft demand in emerging markets in what a J.P. Morgan analyst says is looking like “an exceptionally weak” quarter for switches.
Cisco Systems Inc. signage is displayed outside of the company's headquarters in San Jose, Calif.
Cisco shares shed nearly 1% Wednesday after J.P. Morgan analyst Rod Hall reiterated an underweight rating on the stock saying he continues to “expect the negative macro backdrop in major emerging markets,” which represent roughly 8% of the networking giant’s revenues.
Hall did note that “currency movements are less a headwind in the current quarter than they have been,” which he said “may help Cisco make numbers in what otherwise looks like an exceptionally weak switching quarter.”
Cisco shares were the worst performer on the Dow Jones Industrial Average, which was up 20 points.
Cisco Systems Inc. signage is displayed outside of the company's headquarters in San Jose, Calif.
Cisco shares shed nearly 1% Wednesday after J.P. Morgan analyst Rod Hall reiterated an underweight rating on the stock saying he continues to “expect the negative macro backdrop in major emerging markets,” which represent roughly 8% of the networking giant’s revenues.
Hall did note that “currency movements are less a headwind in the current quarter than they have been,” which he said “may help Cisco make numbers in what otherwise looks like an exceptionally weak switching quarter.”
Cisco shares were the worst performer on the Dow Jones Industrial Average, which was up 20 points.