Cisco Systems, Inc. (NASDAQ:CSCO) reported first quarter results for the period ended October 29, 2016. The networking giant reported 1Q:FY17 sales of $12.35 billion, compared to consensus estimates of $12.34 billion and pro forma EPS of $0.61, compared to consensus of $0.59. Recall, Cisco’s 1Q:FY17 outlook called for EPS of $0.58-0.60.

Cisco executed very well in the margin department this quarter; however, product orders decreased by 2% YoY with a 12% decrease in service provider orders.

For 2Q:FY17, Cisco expects sales to be fall by 2% to down 4% YoY (i.e., $11.27 billion to $11.51 billion when excluding $93 million in CPE sales in 2Q:FY16) and below the Street estimate of $12.16 billion, while pro forma EPS is projected to be $0.55-0.57 (Street is at $0.59) with a operating margin of 29% to 30%.

“We had a good quarter despite a challenging global business environment and we performed well in our priority areas,” said Chuck Robbins, CEO, Cisco. “We are leading our customers in their digital transition by providing them with highly secure, automated, and intelligent solutions in the ways they want to consume them. Our innovation pipeline is robust and we are well positioned for the future.”

Shares of Cisco are currently down 5% to $30.10 in after-hours trading Wednesday. CSCO has a 1-year high of $31.95 and a 1-year low of $22.46. The stock’s 50-day moving average is $30.98 and its 200-day moving average is $29.50.

On the ratings front, Cisco has been the subject of a number of recent research reports. In a report released yesterday, Wunderlich Securities analyst Matthew Robison maintained a Hold rating on CSCO, with a price target of $27, which reflects a potential downside of 15% from last closing price. Separately, on November 14, Nomura’s Jeff Kvaal reiterated a Hold rating on the stock and has a price target of $30.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Matthew Robison and Jeff Kvaal have a yearly average return of 1.8% and 9.6% respectively. Robison has a success rate of 52% and is ranked #1561 out of 4223 analysts, while Kvaal has a success rate of 57% and is ranked #398.

Sentiment on the street is mostly bullish on CSCO stock. Out of 26 analysts who cover the stock, 16 suggest a Buy rating , 9 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $33.75, which implies an upside of 7% from current levels.