If it isn't jobless claims, slowdown in China, or rising foreclosures, then a tech company can step in to spook the markets. Today was Cisco's (News - Alert) turn and the company didn't disappoint, or it did disappoint depending on which way you look at it.
Last night Cisco reported earnings of 33 cents per share, some 75% above last year's quarter but well below the 42 cents per share the analysts had forecasted. That combined with the CEO's comments alluding to uncertainty helped drag the stock down by 10% today, bringing it near its 52-week low.
Well, it's hard to call this market anything but uncertain and in times like this capital expenditures are reduced, specially when it comes to the expensive boxes Cisco sells. The consolation is that Cisco isn't the lone tech company not meeting expectations this quarter.
With a few exceptions such as Oracle (News - Alert), the results haven't been so rosy from the tech arena. Of course one could argue that the analysts have been over-optimistic in their predictions, holding many companies to unrealistic numbers. In fact, disregarding the analysts' forecasts, the results from the tech sector have been quite impressive as compared to last year's and that's a hopeful sign for those looking for a silver lining.Robert Hashemian is VP of Web Development for TMCnet.com with a keen interest in financial markets. To read more of Robert’s articles, please visit his columnist page. He also maintains his personal Web site at www.hashemian.com.