Research archive for CSCO

And then after hours Cicso reported third quarter numbers. Remember how disappointed we were last quarter when their margins were crimped, that was all the focus last time. This time there was an earnings beat, but the outlook was a little dimmer than most anticipated. CEO John Chambers was fairly upbeat that margins were improving and that most of their business strategy's were starting to deliver. He had this to say in the results release: "We have acknowledged our challenges. We know what we have to do. We have a clear game plan, and we are a company with a track record of market-shaping innovation." Chambers has a deep southern accent, reminiscent of Forest Gump, and that is no compliment.

Another one of our recommended stocks in New York, Cisco, reported after hours. And another disappointment, not because of an earnings or revenue miss, they beat on both scores for the quarter, but rather it was the margin squeeze on the go, as a direct result of diversification. But really, sending the stock down nearly nine percent in after hours trade seems like an over-reaction. Gross margins were anticipated to be 63.3 percent, instead it came at 62.4 percent. As Paul pointed out, there was a lot of hot money that flowed into the stock prior to the results (anticipating a blowout quarter) and those fellows are probably closing those positions out in a hurry. Here we go, sales across the divisions.

Cisco. The disco went wonky last night post the market, as Cisco reported first quarter numbers, that were decent enough, but fell short of analyst expectations and the outlook disappointed. The stock is down 12 and a half percent in after hours trade, I guess that is all you need to know about the disappointment levels of the participants. The conference call saw the Cisco team take some pretty hard questions and respond with a "oh, it's the economy" and not saying that it was a Cisco thing, which is probably what analysts listening in wanted to hear. I mean, why not, it seems as if the economy is improving?

b>the Cisco CEO yesterday, he came across as bullet proof as the stock was walloped, in front of his eyes. He made some good points, listen up to this interview: Cisco CEO on Earnings. Stock goes down it is gut wrenching for me, he says. He, being John Chambers. And he makes some good points about their revenue growth long term, 12 to 17 percent. How many businesses do you know that grow at that sort of click, 122 billion dollar market cap. With sales of 150 billion Dollars per annum

Results from Cisco post the market bell, down in after hours trade, but comfortably ahead in normal market trade. Ahead of expectations and I have seen several houses up their forecasts for the full year. Expect somewhere around 170 US cents for the full year. Why would you want to own this company? If you believe that the internet and telecommunications space is going to continue to hot up, Cisco are the people that make the best routing hardware and software. As per their website:

The Cisco disco that was supposed to last all night long, disappointed some folks. A ninety thousand Dollar router that was supposed to change the internet forever did not materialize for some folks. A router that could increase internet speeds 1000 times, plus make you a cappuccino, a toasted sandwich and give you a back massage is probably what some people were expecting. CNET News went with the story Cisco's big announcement? A new router with the headline revealing perhaps their disappointment too.

What is this about? Cisco to unveil network boost for Internet – source Read the article. Then read this from our friends over at the Business Insider: Cisco Making 'Major Technology Announcement' To 'Forever Change The Internet' On March 9. The Business Insider says 9 March, the Reuters story says 17 March. Seems like the answer is 9 March according to this story: Cisco Leaks Vague Plans To Upstage Google Fiber