Bear Stearns cut earnings estimates for Cisco Systems (CSCO).
Analyst Wojtek Uzdelewicz says business is tracking below plan at the top-line across all major geographies. The analyst says poor revenue will offset a benign pricing environment and better component pricing. Based on discounted cash flow analysis, the company is discounting long-term growth of just over 5%.
The analyst says the stock could fall to $8 if investors price in 0% growth over the next couple of quarter. The analyst believes macro concerns will offset a more appealing valuation.
The analyst cut EPS estimates from $0.14 to $0.13 for the first quarter, $0.56 fiscal year 2003 (July) to $0.52. The analyst also trimmed revenue estimates from $4.8 billion to $4.5 billion in the first quarter, and from $20.2 billion to $18.3 billion in fiscal year 2003.