Markets & Finance

Wachovia Cuts EPS Estimates for Cisco

Wachovia cut its earnings estimates for Cisco Systems (CSCO), but kept a hold rating on the stock. Cisco shares fell Wednesday on the news.

Analyst Stephen Koffler lowered EPS estimates from $0.09 to $0.07 for fiscal year 2002 (July), and from $0.31 to $0.28 for fiscal year 2003. He notes that Ciena (CIEN) recently lowered its guidance due to cutbacks at two large customers. He thinks these customers are Qwest and Sprint, which are also large Cisco customers. He says that additional bankruptcies appear likely in the service provider sector, and he also thinks that U.S. telecom capital expenditures could fall sharply.

He is also hearing many customers are not moving ahead with IT projects that include networking, and that Cisco's salesforce is resetting goals to lower expectations. He thinks the shares could retest $10-$12 September lows.

The Aging of Abercrombie & Fitch
blog comments powered by Disqus