Aug. 15, 2013, 7:23 AM
- BAML pronounces the quarter just fine, but says expectations were too high. The long-term investment case remains intact. Buy and $30 price target.
- JPMorgan believes the stock will recover and trade better late this year as enterprises and carrier spending trend upward
- Deutsche maintains its positive outlook and views the stock as even more of a buy on this near-term weakness.
- No downgrades as of yet.
- Earnings/guidance last night.
- CSCO -8.3% premarket.
Aug. 14, 2013, 5:34 PM
Aug. 14, 2013, 5:07 PM
- Cisco (CSCO) guides on its FQ4 CC for 3%-5% Y/Y FQ1 revenue growth, and FQ1 EPS of $0.50-$0.51. That's somewhat unfavorable to a consensus for 4.9% Y/Y rev. growth and EPS of $0.51.
- Total orders rose 4% Y/Y in FQ4, less than rev. growth of 6%. Americas orders +5% and EMEA +6%, but Asia-Pac/Japan -3%, thanks in part to a 6% drop for China. Cisco says it's seeing an "improving" but nonetheless "mixed" macro environment.
- The company also announces it's cutting 4K jobs (5.5% of its workforce), and expects to record $550M in pre-tax charges related to the move.
- FQ4 results, details
Aug. 14, 2013, 4:33 PM
- Cisco (CSCO) spent a whopping $1.2B on buybacks in FQ4, up from FQ3's $860M and boosting EPS.
- FQ4 product sales (78% of revenue) +6% Y/Y, up from FQ3's +5%. Services growth fell to 6% from FQ3's 7%.
- Sales/marketing spend -2% Y/Y to $2.36B, R&D +7% to $1.5B.
- FQ4 gross margin was 62.1%, down from FQ3's 63% but slightly above guidance of 61%-62%.
- Expectations were definitely high.
- CC getting started. Guidance should be provided.
- FQ4 results, PR
Aug. 14, 2013, 4:06 PM
- Cisco Systems (CSCO): FQ4 EPS of $0.52 beats by $0.01.
- Revenue of $12.42B (+6% Y/Y) beats by $0.02B. Shares -2.2% AH. (PR)
Aug. 14, 2013, 12:10 AM
Aug. 13, 2013, 5:35 PM
Aug. 12, 2013, 1:54 PM
- Cisco (CSCO +1.1%) is near its 52-week high after Goldman's Simona Jankowski becomes the latest in a line of analysts to make upbeat comments ahead of the networking giant's Wednesday FQ4 report.
- Jankowski, who is raising her PT to $30 from $28: "We expect Cisco to report a solid F4Q quarter on improving enterprise networking demand, higher carrier capex, and strong execution, with EPS upside aided by better gross margins." She also forecasts FY14 rev. growth of 6.9% (above a 5.5% consensus) on the back of solid Ethernet switch, Wi-Fi, and UCS server sales.
- JPMorgan upgraded Cisco to Buy on Friday, citing improving enterprise IT demand and rebounding government orders. UBS lifted its PT to $28.50 on Thursday, citing healthy router/Wi-Fi sales and encouraging earnings news from suppliers. Deutsche raised its PT to $28 last Monday.
- Cisco +36% YTD. After backing out $35B in net cash/investments, shares trade at 9x FY14E EPS.
Aug. 9, 2013, 9:41 AM
- Cisco (CSCO - unchanged) has been upgraded to Neutral by JPMorgan ahead of its Aug. 14 FQ4 report.
- Baidu (BIDU +2.5%) has been upgraded to Buy by Citi following a 50%+ run-up since early July.
- SunEdison (SUNE -2.4%) has been cut to Hold by Ardour Capital two days after posting a mixed Q2 report.
- Accenture (ACN +0.7%) has been upgraded to Outperform by Baird.
- Orbitz (OWW -0.9%) has been cut to Neutral by Lazard following yesterday's huge post-earnings gains.
- inContact (SAAS -8%) has been cut to Hold by Benchmark following its Q2 revenue miss.
- Take-Two (TTWO +1.3%) has been started at Buy by Benchmark.
- Ixia (XXIA +1.9%) has been started at Buy by Jefferies.
Aug. 6, 2013, 5:57 PM
- Finisar (FNSR) is making new 52-week highs after raising its FQ1 guidance well above consensus.
- Cisco (CSCO) +0.5% AH and Juniper (JNPR) +0.8%. Finisar's remarks about seeing "increased sales of 10G, 40G and 100G Ethernet transceivers for datacom applications" could bode well for Cisco's FQ4 data center switch sales (results arrive on Aug. 14). Cisco, believed to have ~2/3 of the 10G switch market, has already been seeing strong data center switch demand. Campus switch demand has been softer.
- Finisar's full FQ1 results are due on Sep. 5.
Aug. 5, 2013, 8:03 PM
- Cisco (CSCO +0.5%) continued its slow-but-steady rally today, aided by a bullish note from Deutsche's Brian Modoff.
- Modoff, who has raised his PT to $28 from $26, says he expects "in-line to slightly positive" FQ4 (July quarter) results and FQ1 guidance, as data center switching, Wi-Fi, and services strength offset emerging markets weakness.
- Recent acquisitions (I, II, III) are seen driving future upside surprises.
- Shares +36% YTD going into Cisco's Aug. 14 FQ4 report.
Jul. 23, 2013, 9:29 AM
Cisco (CSCO) appears to have two main goals with the Sourcefire (FIRE) acquisition: 1) To grow its exposure to the intrusion prevention system (IPS) space, which is growing rapidly as reports of major hacking incidents put governments and enterprises on edge. Sourcefire, the IPS market's leader, has been expected to grow 25% in 2013. Cisco's security sales fell 4% Y/Y last quarter. 2) To develop end-to-end security platforms that combine traditional firewall tools with more software-centric offerings providing application/service-level security and a deeper understanding of user activity. Palo Alto Networks (PANW - next-gen firewall leader) and Fortinet (FTNT - UTM hardware leader) are each addressing this trend in their own ways. (PR) (John Chambers' security "blank check")| Jul. 23, 2013, 9:29 AM
Jul. 23, 2013, 8:10 AM
Jul. 1, 2013, 12:58 PM
Cisco's (CSCO +1.8%) dominant 10G Ethernet position has "translated into meaningful share gains across switching and routing markets," says Piper's Troy Jensen in a bullish note. Jensen observes Cisco has a 67% share of the 10G switch market following a March quarter in which port shipments rose 35% Y/Y, and that Gartner sees the market posting a 9.7% CAGR through 2017 in spite of a 15.4% annual drop in price/port. He also thinks "recent security concerns at Huawei and structural issues at Alcatel-Lucent (ALU)" should lead to further share gains. Jensen's comments follow a string of upbeat notes in response to last week's Cisco Live announcements (I, II).| Jul. 1, 2013, 12:58 PM
Jun. 26, 2013, 7:03 PM
Cisco (CSCO) follows up on its Catalyst switch refresh by providing details about its secretive Insieme unit's ambitions. Insieme wants to enable a data center infrastructure in which switches automatically adapt to the needs of apps, support developer APIs, and can use both custom ASICs and off-the-shelf processors (though Insieme adds its ASICs support extra features). As Light Reading's Craig Matsumoto notes, many other software-defined networking providers have similar ambitions. Cisco is also updating its Nexus data center switch line to support up to 192 100G ports and improved hardware automation. The Nexus business has been growing well in spite of tough competition from Arista, Dell's Force10, and others,| Jun. 26, 2013, 7:03 PM
Jun. 25, 2013, 6:06 PMA refresh of Cisco's (CSCO) Catalyst Ethernet switch line has been the highlight of the networking giant's Live conference. In addition to hardware updates (higher-density line cards, more powerful supervisor engines, etc.), Cisco has added support for its ONE software-defined networking (SDN) controller (recently launched) and related onePK API. Cisco plans to provide onePK support for its entire switch/router lineup in the next 12 months. The hardware updates are meant to deal with near-term competition from H-P, Huawei, and others. The software updates are aimed at keeping buyers of Cisco's proprietary gear loyal over the long run as a slew of SDN rivals roll out solutions leveraging commodity hardware. | Jun. 25, 2013, 6:06 PM | 1 Comment