Cisco, When ‘Moderate & Challenging’ Trumps 19% Growth (CSCO)
Cisco Systems Inc. (NASDAQ: CSCO) is seeing some real volatility in the after-earnings trading session this evening. The networking, communications and now data center giant in tech reported first quarter non-GAAP earnings of $0.42 EPS and there was a 19%…
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No formal targets ahead were provided, so consider today’s news unfinished business until guidance is given. Thomson Reuters estimates ahead are $0.42 EPS and $11.08 billion in revenues.
John Chambers maintains that the economic environment is challenging. He discussed delivering on the areas that the company can control at a time when the company is noting that capital spending is moderate in many areas of its business.
Cash flow (or caish-flow per Chambers) from operations was $1.7 billion; cash and equivalents was $38.9 billion; it repurchased 113 million shares of common stock at an average of $22.14 per share for an total of $2.5 billion; Days sales outstanding in accounts receivable was 38 days (versus 32 days a year ago and versus 41 days one quarter ago; Inventory turns on a Non-GAAP basis were 10.8, versus 12.1 one quarter ago and versus 11.3 a year ago. Gross margin was 62.8% versus 65.3% before.
Cisco was freshly listed as one of our Top 10 Stocks For The Next Decade, which has nothing to do with quarter to quarter comparisons.
The stock closed up 0.57% at $24.49 and the shares are down about 4% so far at $23.50 because of the company’s stance that the environment remains challenging and on word that ‘moderate’ was the term to describe the current cap-ex spending environment.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
