Needham & Company Maintains Hold Rating on Cisco Systems (CSCO) Citing CY17 Results, Macro Headwinds

Needham & Company analyst Alex Henderson reiterates Hold rating on Cisco Systems Inc. (NASDAQ: CSCO), suggesting a mixed outlook for the company due to currency and macro headwinds, even as the company reported CY17 revenues above estimates.

Henderson comments, "We come away from the Cisco print thinking the company is running hard to hold its ground. The shift to subscription is estimated to have trimmed revenues by 1-2%. OK, but revenues declined by 3% on an asreported basis and 2% adjusting for the divestiture against an easy comparison. If it was for offshore cash repatriation and tax relief, we think the shares would be lower. Switching declined 5% and Routing down 10%. These core product areas still account for over half of Product Sales and likely half of Service Revenues. Further, despite exiting the near-breakeven Service Provider Video business, Product GMs continue to slide. Cisco has cash and a potential for a windfall, but we don't see growth."

For an analyst ratings summary and ratings history on Cisco click here. For more ratings news on Cisco click here.

Shares of Cisco closed at $32.82 yesterday.

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