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Cisco Systems, Inc. (CSCO)

  • Nov. 14, 2012, 10:36 AM
    Pac Crest's Brent Bracelin has upgraded Cisco (CSCO +6.4%) to Buy in response to its solid FQ1 results and FQ2 guidance. Cisco "could grow in 2013 and have stable to improving gross margin for the first time in two years," thinks Bracelin. Piper likes Cisco's sales execution and cost controls, and FBN notes shares trade at 5x EPS exc. cash. Europe is still a concern for many. FFIV +4%. JDSU +2.7%. XLNX +2.8%. BRCM +1.8%. CAVM +6.9%. FTNT +3.3%. ARUN +4.6%.  (CC comments: I, II) (transcript)
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  • Nov. 14, 2012, 9:10 AM
    Premarket gainers: ANF +32%. TCX +21%. ZAZA +8%. CSCO +7%. FRO +7%. ARO +7%
    Losers: IAG -8%. SNE -7%. MOS -5%.
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  • Nov. 13, 2012, 7:04 PM
    A few more details from Cisco's (CSCO) FQ1 call: Analysts were surprised by Cisco's light FQ2 gross margin guidance, in light of FQ1's margin strength. Cisco attributed the guidance to a mix shift and noted its UCS server line, which carries relatively low margins, is growing rapidly. John Chambers claimed Cisco is competing better with Huawei (still a concern for many) than it was 12-18 months ago. He reaffirmed Cisco's strained partnership with EMC/VMware, but added Cisco plans to form closer ties with EMC rivals such as NetApp, Red Hat, and Microsoft.
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  • Nov. 13, 2012, 5:45 PM
    After-hours top gainers, as of 5:15 p.m.: FOLD +6.7%. CSCO +6.6%. WWD +3.3%. ARUN +3.3%. NTI +2.8%.
    After-hours top losers: MOS -5.4%. SEP -4.6%. ES -4.0%. UBNT -3.4%. PATK -3.2%.
  • Nov. 13, 2012, 5:16 PM
    More on Cisco's call: The company is encouraged by U.S. and Asia-Pac activity, though Europe remains weak. Americas orders only up 2% Y/Y, hurt by federal demand, but enterprises and service providers up 9% and 13%. Asia-Pac +7% (India up strong, China flat), EMEA -10%. Wireless sales +38% Y/Y (good for ARUN), collaboration -8%, hurt by telepresence (bad for PLCM), data center (UCS servers) +61%. Switching and routing sales down slightly, but ASR9000 edge routers growing fast (good for EZCH). Cisco is looking to grow its recurring revenue streams.
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  • Nov. 13, 2012, 5:00 PM
    Cisco (CSCO) uses its FQ1 call (webcast) to guide for FQ2 revenue growth of 3.5%-5.5% and EPS of $0.47-$0.48, which compares with a consensus of 4.2% growth and $0.47. Gross margin is expected to be in the range of 61%-62%, down a bit from FQ1's 62.7%. Shares +7.5% AH.
  • Nov. 13, 2012, 4:10 PM
    Cisco Systems (CSCO): FQ1 EPS of $0.48 beats by $0.02. Revenue of $11.88B (+5.5% Y/Y) beats by $110M. $253M worth of shares repurchased at average price of $16.44. Shares +2.3% AH. CC at 4:30PM ET (webcast). (PR)
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  • Nov. 13, 2012, 7:51 AM
    Cisco's (CSCO) FQ1 earnings are due out after the bell, with analysts expecting that adjusted EPS rose to $0.46 from $0.43 as revenue increased 4.6% to $11.77B. However, Cisco has been the subject of growing negative sentiment lately, hurt by its high-tech rivals issuing pessimistic guidance. Some analysts fear Cisco may miss consensus, while others aren't optimistic about what its guidance might be.
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  • Nov. 13, 2012, 12:10 AM
    Notable earnings after Tuesday’s close: CSCO, GA, IAG, NKTR, RENN, SVM
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  • Nov. 12, 2012, 5:35 PM
    Notable earnings after Tuesday’s close: CSCO, GA, IAG, NKTR, RENN, SVM
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  • Nov. 12, 2012, 5:40 AM
    Cisco (CSCO), Netgear (NTGR) and Motorola Solutions (MSI) formulate a new strategy in their battle with patent trolls by accusing them of racketeering. One of the trolls, Innovatio, has attempted to collect royalty payments from the users of the tech companies' networking gear, such as coffee chains, rather than the manufacturers, and has sent 8,000 "threatening" letters. That, says Cisco, breaks the law.
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  • Nov. 9, 2012, 7:33 AM
    Cisco (CSCO) is downgraded to Neutral from Overweight at JPMorgan, the analysts proving they read the papers by citing weak government and corporate spending. Shares -1.4% premarket.
  • Nov. 7, 2012, 6:42 PM
    Pres. Obama's re-election doesn't bode well for the odds of a tax holiday on overseas cash, notes Eric Savitz. That's problematic for large-cap tech names such as Apple (AAPL), Microsoft (MSFT), and Cisco (CSCO), which respectively have $83B, $54B, and $42.5B stashed overseas (per their most recent financials). As Savitz observes, there's a good chance some of that cash will be used on foreign acquisitions, especially in light of recent deals such as Microsoft/Skype and Cisco/NDS.
  • Nov. 7, 2012, 1:36 PM
    U.S. cell tower owners American Tower (AMT +2.4%), SBA (SBAC +1.6%), and Crown Castle (CCI +0.8%) are also getting a lift from AT&T's (T -2.3%) capex plans, which include a push to offer 4G LTE services as a broadband option for rural areas. Wells Fargo expects AMT to benefit from AT&T's plan to adds 10K new cell sites and 40K small cells, while Citi views Ciena (CIEN +8%), Juniper (JNPR +1.8%), Cisco (CSCO -0.9%), and Adtran (ADTN +4.2%) as beneficiaries of Ma Bell's wireline investments.
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  • Nov. 6, 2012, 1:43 PM
    Ahead of its investor day, Ericsson (ERIC -1.2%) forecast the telecom equipment market will show a CAGR of just 3%-5% from 2012-2015. In light of all the bad earnings news and capex forecasts to hit the telecom equipment space lately, not too many will argue with Ericsson's assessment. The company does, however, think the telecom services, support solutions, and OSS software markets, where it has been trying to grow its positions, will post healthier (though not spectacular) CAGRs.
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  • Nov. 6, 2012, 1:19 PM
    MKM, Deutsche, and Oppenheimer's Cisco (CSCO +0.7%) checks all indicated slowing activity. MKM, which upgraded a month ago, says 60% of polled U.S. resellers reported October sales below plan. Deutsche reported seeing "below seasonal" trends for enterprise switching and routing, offset some by strength in servers, Wi-Fi, and security. Oppenheimer thinks a U.S. slowdown is a clear headwind, and will lead to below-consensus guidance when Cisco reports on Nov. 13. Some of this is likely baked in following October's earnings reports (I, II, III).
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Company Description
Cisco Systems Inc is engaged in designing, manufacturing and selling of Internet Protocol (IP) based networking products and services related to the communications and information technology (IT) industry.