Yahoo Finance's Jared Blikre joins the Live show to check out Cisco's mixed Q3 earnings report.

Video Transcript

RACHELLE AKUFFO: All right, we're keeping it going with our earnings alerts here. Cisco reporting after the bell, reporting its third quarter earnings. Let's bring in Jared Blikre to break down those numbers. Jared, what are we seeing?

JARED BLIKRE: Nothing good here. The stock was down as much as 19% in afterhours trading, a huge miss on the top line number. Now they're looking for-- actually, the third quarter revenue came in at $12.84 billion. And that's a pretty big miss from the estimate of $13.34 billion. I'll go over some of the-- how that breaks down in a second, but just want to note that the EPS, adjusted EPS for the quarter was a beat. That's $0.87 versus $0.86.

But let's go through that product revenue right now. So their secure Agile Networks revenue, that's $5.87 billion, a miss from the Street's estimate of $6.08 billion. Internet for the future revenue, $1.32 billion versus $1.41. Optimized application experience revenue, $1.83 billion. Estimate, 1.1-- excuse me, $183 million versus the estimate of $194 and 1/2 million. And you look at the adjusted gross margin here. That's 65.3% versus estimates of 64.3%. So a little bit of good news there.

But when you look at the year forecast, this is where it gets bad. They're seeing adjusted EPS of 3.29 to 3.37. That's $3.29 to $3.37. And the estimate was $3.44, so that was higher. They lowered that. They were previously looking for $3.41 to $3.46. Also, they're seeing revenue of 2% to 3% increase. Previously, they saw 5 and 1/2% to 6 and 1/2%. The estimate was for 6.05%. So, bottom line, we have another terrible earnings story. We'll have to see what happens in the call, what they're saying about this. But for now, Cisco under pressure, guys.