🤔 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.

Market Snapshot 📈

S&P 500 (Monday Close) 3,626.91 +41.76 (1.16%)

NASDAQ (Monday Close) 11,924.13 +94.84 (0.80%)

FTSE 100 (5 PM IST) 6345.48 -75.81 (-1.18%)

NIFTY 50 (Today’s Close) 12,874.20 +93.95 (0.74%)

USDINR (5 PM IST) 74.48 (1 Year +3.76%)


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: 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%  HOLD 50%  SELL 0%


Newsworthy 📰

  • Now Medicines Too: Amazon launches online pharmacy store with discounts for Prime members (DIS + 0.07%)
  • What to Expect: Walmart is set to report earnings before the bell  (WMT +1.26%)
  • Good Going: Home Depot earnings beat as shoppers focus on home, retailer to make pandemic pay raises permanent (HD +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


Disclaimer: The content of this article has been created and published by Winvesta India Technologies Pvt. Ltd., in order to ease the reader’s understanding of the subject matter. The information and/or content (collectively “Information”) provided herein is general information sourced through various news reports and does not constitute a research report or a research analysis. The Information is not intended to offer advice, target or solicit any particular customer or group of customers to buy or sell securities. 

Winvesta does not render any research or advisory services and provides a more detailed description of its services on its website and mobile application along with the terms and conditions published therein from time to time. While reasonable care has been exercised to ensure that the Information is adequate and reliable, no representation is made by Winvesta as to its accuracy or completeness and Winvesta, its affiliates, subsidiaries and employees accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. Neither Winvesta nor any of its affiliates are acting as an investment adviser, research analyst or in any other fiduciary capacity. Accordingly, reader’s are expected to undertake their own due diligence in consultation with their own advisors and are advised not to solely rely on the Information. Any such reliance shall be at the reader’s own risk. 

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.


Start Building Your Global Portfolio Today

Download Winvesta App now to Get Started