Cisco Systems & Clean Diesel Technologies Gapped Down After Earnings (NASDAQ:CSCO, CDTI)
Cisco Systems, Inc.(NASDAQ:CSCO) is the biggest loser on the DOW ass the stock slumped 8.505 in the opening session as the company late Wednesday provided lower than estimated outlook for the current quarter, while third-quarter profit ahead of analysts’ estimates.
The company earned $2.2 billion, or 40 cents per share, during its fiscal third quarter, up 20% from a year ago profit of $1.8 billion, or 33 cents per share. On an adjusted basis, the company would have earned 48 cents a shares, a penny higher than analysts’ forecasted profit.
Revenue during the quarter grew 7% to $11.6 billion, in-line with analyst projections.
For FY Q4, the company sees revenue up 2%-5% on year-over-year basis. The company sees non-GAAP gross margin of 61%-62%, with 26.5%-27.5% operating margin. The company sees 44-46 cents in non-GAAP EPS, below the Street at 49 cents. The Street had been projecting 7.1% revenue growth. The revenue guidance implies revenue of $11.42 billion to $11.76 billion, below the Street at $11.99 billion.
Shares of CSCO are down 8.65% to $17.18 in the opening session on heavy trading.
Clean Diesel Technologies, Inc.(NASDAQ:CDTI) shares also slumped 23% after the company reported a much higher than estimated first quarter loss.
The company said that it lost $2.8 million, or $0.39 per share, compared to a year ago net loss of $2.2 million, or $0.54 per share, missing analysts’ estimates of a loss of 29 cents a share.
Revenue grew 23.30% to $17.0 million, from $13.8 million for the prior year first quarter, ahead of analysts’ estimates of $16 million.
“We began 2012 with a strong top-line performance as we reported revenue growth in excess of 23 percent year over year,” said Craig Breese, Chief Executive Officer of Clean Diesel. “Sales in our Heavy Duty Diesel (“HDD”) Systems division led our growth with an increase of more than 33 percent as we benefitted from additional sales of over $4 million to the London Low Emission Zone (“LEZ”) as a result of the extension announced by the regulator at the end of 2011.
Shares of CDTI are down 23% to $2.72 in the opening session.