Cisco met estimates after the close on Tuesday, but investors were looking for more.
Earnings of 15 cents a share matched analysts’ estimates, and revenues of $4.7 billion topped $4.68 forecasts. But the stock fell 5% after hours, as investors looking for signs of a stronger rebound in tech spending were once again disappointed. Forward guidance of 2-4% revenue growth and falling margins also weighed on the stock.
Also after hours, S1 , Serena
, and CheckFree
warned, and WebMD
beat estimates and reaffirmed guidance.
The broader market fell sharply during the day, as concern over rising interest rates and mixed economic data hit U.S. markets hard.
The Nasdaq plunged 40 to 1673, the S&P 500 fell 17 to 965, and the Dow dropped 149 to 9036. Volume rose to 1.31 billion shares on the NYSE, and 1.74 billion on the Nasdaq. Decliners led 22-10 on the NYSE, and 20-10 on the Nasdaq. Downside volume was 83% on the NYSE, and 76% on the Nasdaq. New highs-new lows were 44-73 on the NYSE, and 99-9 on the Nasdaq.
Wireless Facilities and InterActiveCorp
fell despite better than expected results. IACI chief Barry Diller says he sees a rebound for the online travel industry.
IBM brightened the prospects of two small companies. VA Software
soared 40% on a deal with IBM. Wave Systems
, which already had soared 300% on a deal with Intel
, got only a small boost from its partnership with IBM.
Monster Worldwide fell 2.5% after losing MSN’s business to rival CareerBuilder.
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