Cisco earnings is a beat, but its next quarter will be softer than expected

Cisco just reported its first quarter earnings. Although it reported a healthy beat, investors are not happy. Cisco is warning them that its second quarter won't be as strong as they expected.

Cisco reported:

• $12.7 billion in revenue. Analysts were expecting $12.65 billion. That's a slight beat.
• 59 cents EPS, analysts expected 56 cents EPS. That's a big beat.

But the stock is dropping in after-hours trading because its guidance was ligher than expected.

Cisco expects 0%-2% year/year FQ2 revenue growth and EPS of 53-55 cents. Analysts wanted 5.1% revenue growth and EPS of 56 cents. The stock is down about 3% in after-hours trading.

Cisco CEO Chuck Robbins is blaming the global economy and foreign exchange rates. In the press release, he said, "We guided to solid growth in Q2. Our guidance reflects lower than expected order growth in Q1, driven largely by the uncertainty of the macro environment and currency impacts."

Here's the full press release.

This is the first full quarter under Cisco's new CEO Chuck Robbins, although he hasn't been flying totally solo. Former long-time CEO John Chambers is executive chairman and still very much involved in the company.

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