Cisco had said in the past quarter that U.S. tariffs and Chinese customers shunning its network gear was hurting its business.
The company said it expects revenue in the current quarter to drop by 3 percent to 5 percent from a year earlier to between $12.07 billion to $11.82 billion. Analysts were expecting revenue of $12.77 billion, according to IBES data from Refinitiv.
The company has been moving its focus to newer areas such as software and cybersecurity to counter slowing demand for its routers and switches as companies increasingly opt for cloud-based services offered by Amazon and Microsoft.
Cisco expects profit on an adjusted basis to be between 75 cents and 77 cents per share in the current quarter, below analysts’ average estimate of 79 cents. The gloomy outlook overshadowed first-quarter results, which beat expectations.
Total revenue in the quarter ended Oct. 26 rose nearly 1 percent to $13.16 billion, above expectations of $13.09 billion.
Disney Plus draws 10 million customers
Walt Disney reached a record high in Wednesday trading after its new video-streaming platform attracted 10 million customers, a blistering pace that reflects the strength of the family-friendly brand in an increasingly crowded market.
The service, Disney Plus, was made available Tuesday in the United States and Canada, though the company had been offering it earlier in the Netherlands as a test. Rabid fans also have had months to preorder the service at a discounted rate. Still, the 10 million figure surprised analysts, who had expected Disney to take much longer to reach that level.
The stock climbed as much as 6.8 percent, shaking off an early decline. That was the biggest intraday rally in seven months. Netflix shares fell 3.7 percent as its investors assess how big a threat Disney Plus will be.
Disney also made headway in fixing glitches after a rocky start.
WeWork reported a net loss of $1.25 billion in the third quarter, eclipsing its sales and more than doubling its loss from the same period last year. The quarter coincided with a spending spree in anticipation of the initial public offering, which failed. Revenue in the quarter was $934 million.
Volkswagen is making Tennessee its North American base for electric vehicle production, breaking ground on an $800 million expansion at its plant in Chattanooga.