Cisco's Robbins says guidance 'not a reflection of demand issue'
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Cisco's (NASDAQ:CSCO) Chief Executive Chuck Robbins defended the company's lowered fourth-guidance, noting it's not a demand issue for the networking company.
"Our customers are not signaling any real shift at this point," Robbins said on the conference call discussing Cisco's (CSCO) quarterly results, noting that there is a $200 million impact from a lack of demand in Russia and a $300 million impact trying to get power supplies out of China as a result of the Covid-related lockdowns.
"When we look at [fourth-quarter] and we think about the Shanghai lockdown, there's a very simple explanation for what occurred," Robbins added.
"There's no reflection of a demand issue for [fourth-quarter] guidance."
Cisco (CSCO) shares fell more than 14% to $41.53 in after-hours trading, though they were off the worst levels of the session.
The Robbins-led Cisco (CSCO) posted third-quarter results that missed expectations, while also lowering full-year earnings estimates.
For the period ending April 30, Cisco said it earned an adjusted 87 per share on $12.8 billion in revenue. Analysts were expecting the company to earn 86 cents per share on $13.34 billion in sales.
On the call, Robbins added that the biggest differentiator between Cisco (CSCO) and its competitors is that its quarter "felt the full month of impact" from April, whereas its competitors did not.
In addition to the quarterly results, Cisco (CSCO) lowered its full-year earnings per share forecast to be between $3.29 and $3.37 per share, down from a previous outlook of $3.41 to $3.46 per share. Analysts had expected the company to earn $3.44 for the full-year.
Full-year revenue is expected to grow between 2% and 3%, down from a previous outlook of 5.5% to 6.5% growth.
Looking ahead to the next quarter, Cisco (CSCO) expects revenue to decline between 1% and 5.5%, while adjusted earnings between 76 cents and 84 cents per share. 
Last month, Citi downgraded Cisco (CSCO) shares to sell, with the investment firm expecting some challenges to its market share from rivals.