🤔 Where Has Cisco Been?
🤔 Where Has Cisco Been?
Cisco reports upbeat earnings after four straight quarterly revenue drops
Hey Global Investor, here's what you need to know before the US markets open.
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Where Has Cisco Been?
Tech companies have been on a tear during the pandemic. However, networking hardware behemoth Cisco has clocked revenue declines four quarters in a row. The decline in the latest quarter is less than what Wall Street had estimated.
Background:Â Cisco Systems Inc. develops, manufactures, and sells networking hardware and software, also specializes in IoT, domain security, and energy management.
With the advent of cloud offerings from the bigwigs – Google, Microsoft, Amazon – businesses have lowered spending on networking hardware, Cisco’s staple. Besides, Cisco’s efforts to build a software business to complement its hardware offerings are taking time to gain traction.
Fast forward to fiscal Q1. The company announced a new financial officer and posted better-than-expected results. R. Scott Herren, formerly a senior VP and CFO of Autodesk, will succeed Kelly Kramer as Executive VP and CFO from December 2020.
What Happened?  Cisco’s offered a slightly positive outlook for the January quarter, giving investors something to cheer about.
Key Numbers
Adjusted EPS: $0.76 vs. $0.70 expected
Revenue: $11.93B vs. $11.85B expected
Product revenue was down 13%, and service revenue was up 2%. Sales were down worldwide, 10% in both Americas, Europe, and MEA and 7% in APAC and Japan.
For fiscal Q2, Cisco expects 75 in adjusted EPS and a 2% decline in revenue (compared to EPS of 73 cents and 3% revenue decline according to analyst estimates).
Cisco’s WebEx video conferencing business had 600M attendees in October, nearly double the number in March. CEO Robbins noted the company would host an event in early December to announce some updates on the WebEx business.
Market Reaction: Cisco’s stock is down 20% YTD. The stock closed at $42.54 on Monday, up 2.75%
Company Snapshot 📈
CSCO $42.54 +1.14 (2.75%)
Analyst Rating (26 Ratings) BUY 50%Â HOLD 50% Â SELL 0%
Newsworthy 📰
Now Medicines Too:Â Amazon launches online pharmacy store with discounts for Prime members (DISÂ + 0.07%)
What to Expect: Walmart is set to report earnings before the bell (WMT +1.26%)
Good Going:Â Home Depot earnings beat as shoppers focus on home, retailer to make pandemic pay raises permanent (HDÂ +0.87%)
Later Today 🕒
6.00 PM IST: Retail Sales
6.00 PM IST: Import Price Index
Before Market Open: Kohls Corp Earnings (KSS)
Before Market Open: The Home Depot Earnings (HD)
TAS: Walmart Inc Earnings (WMT)
Fun Fact of The Day 🌞
A Boeing 747 is made up of six million parts
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