Cisco Profits Up, But Murky Outlook Drags Stock Down

Cisco touted a 37% increase in its first-quarter profits, but it wasn’t enough on Wall Street to overcome a pessimistic outlook for the company's current quarter. The network equipment maker said its revenue-growth forecast of $9.79 billion will fall just short of the $9.81 billion most analysts expected. The news depressed the stock by 9% in after-hours trading, MarketWatch reports.

“Looks pretty solid,” said one analyst, who added that “investors were expecting more.”  Cisco did have good news: During its fiscal first quarter, which ended Oct. 27, it boosted revenue by 17%, Reuters reports, partly on the strength of new products. But another analyst warns the company will need to “work hard to maintain growth” to fend off rival Juniper Networks.