Despite beating earnings expectations in the second quarter and increasing dividends, Cisco’s (NASDAQ:CSCO) shares dropped by 5% after the announcement of weaker-than-expected guidance and plans for company-wide layoffs. Cisco anticipates Q3 adjusted EPS between $0.84 and $0.86, below the consensus of $0.92, and revenue in the range of $12.1B to $12.3B, much below the consensus of $13.09B. Additionally, Cisco provided FY2024 guidance, forecasting adjusted EPS between $3.68 and $3.74 vs. the consensus of $3.86, with revenue between $51.5B and $52.5B compared to the consensus of $54.41B. The company plans to lay off approximately 5% of its workforce to concentrate on growth areas, expecting to incur approximately $800M in charges related to the restructuring, primarily for severance and termination benefits.
Shares of Twilio (NYSE:TWLO) plunged by 13% following the company’s announcement of lower-than-expected revenue guidance for the current quarter. Twilio expects Q1 2024 revenue to be between $1.025 billion and $1.035 billion, falling short of the consensus estimate of $1.05 billion. The company also forecasts adjusted earnings per share to be in the range of $0.56 to $0.60, compared to a consensus of $0.54. CEO Khozema Shipchandler stated, “We enter 2024 from a position of strength, and the team is focused on further delivering on our customer engagement vision for our customers.”
Blink Charging (NASDAQ:BLNK) shares retreated 7%, giving back the 32% gain from the previous session, driven by strong Q4 revenue projections exceeding estimates. The builder of charging networks for electric vehicles anticipated 4Q revenue to surpass $42 million, exceeding the $34.3M consensus. Additionally, FY2023 revenue is projected to exceed $140M, surpassing its previously announced revenue target of $128M to $133M. CEO stated, “We are excited about our record-breaking fourth-quarter and full-year 2023 revenue growth. We saw strong demand for both our equipment and services. This is the result of consistent and systematic steps that we took to strengthen our product portfolio and service offerings, supported by our vertical integration strategy and dedicated customer service team.”
