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 Cisco (Nasdaq: CSCO) reported better-than-expected earnings and revenue for the fiscal first quarter. However, the networking hardware company slashed guidance for the fiscal Q2 and full fiscal year due to declining new product orders, sending its shares plummeting over 11% in the premarket. 
 Cisco Beats Earnings and Revenue Estimates, Cuts OutlookCisco shares are down 11% in Thursday’s premarket following the company’s discouraging financial report for the fiscal Q1 2024. The maker of networking hardware equipment reported adjusted earnings per share (EPS) of $1.11, topping the consensus estimates of $1.03. Net income stood at $3.64 billion, or 89 cents a share, up from $2.67 billion, or 65 cents per share, in the same period last year.Revenue also came above consensus projections. The company generated $14.67 billion in revenue in the quarter, while analysts were looking for $14.61 billion. Year-over-year, it increased by 7.6%.However, what caused the stock price decline was Cisco’s guidance for the current Q2 and the full fiscal year. Notably, the tech company expects adjusted EPS of 82 cents to 84 cents in the fiscal second quarter, on revenue of $12.6 billion to $12.8 billion. This implies a revenue decline of 6.6% and falls short of Wall Street’s estimates of 99 cents and $14.19 billion for EPS and revenue, respectively.Cisco also trimmed its full-year forecast range for revenue to $53.8 billion to $55 billion, compared to the estimated $57.67 billion. However, it raised adjusted earnings estimates to $3.87 to $3.93, up from the previous range of $3.19 to $3.32 but still below the consensus projection of $4.05 a share. During the first quarter, Cisco acquired cybersecurity service provider Splunk for $28 billion.
 Cisco Faces a Slowdown in New Product OrdersThe key factor behind the guidance trim is a deceleration in new product orders, Cisco said in the earnings release. This is primarily because the company’s clients are occupied with installing and implementing products following robust deliveries in the preceding three quarters.“Our customers and our sales organizations have been very clear with us over the last 90 days that this is the issue,” Cisco CEO Chuck Robbins told analysts during the conference call. However, sales cycles remain longer than usual, he added.Looking ahead, Cisco anticipates that a backlog of shipped products, covering one or two quarters, is awaiting implementation. The company’s shares are up 11.1% in 2023, underperforming the broader S&P 500. Considering the decline in product orders, the stock may face additional pressure in the short term, especially if the slowdown worsens.More By This Author:A Quick Look At Berkshire Hathaway’s Recent Moves Three Stocks Poised To Benefit From Inflation Cooling Retail Sales Decreased In October But Lower Than Expected