Cisco Beats but Declines Afterhours - Analyst Blog
15 August 2013 - 12:06AM
Zacks
Cisco Systems (CSCO) reported fourth quarter
numbers after the bell today. EPS came in at $0.49 verse
Zacks Consensus Estimate of $0.47, and Revenues of $12.42 billion,
slightly beat the Zacks Estimate.
According to Zacks Expected Surprise Predictor (ESP), there has
been a 100% positive analysts agreement over the past 60 days, and
four consecutive quarters with an average positive surprise of
6.52% (the fourth quarter being a positive 4.26% surprise).
Therefore, the ESP model indicated a small but positive surprise
for the fourth quarter 2013.
The street was concerned with Juniper Networks
(JNPR), and Hewlett Packard (HPQ), and their
recent price discounting. Analysts were worried that the new
promotions would cut into Cisco’s margins. Cisco was able to
deflect this competition by offering discounts; Catalysts Switch
Promo, UCS discount for new users, and WAN Optimization to name a
few.
Chairman and CEO John Chambers stated that, “My confidence in
our ability to be the #1 IT Company is increasing. Our fourth
quarter was a record on many fronts, with record revenue, and
record non-GAAP operating income, non-GAAP net income, and non-GAAP
earnings per share. In every case, we exceeded the midpoint of our
guidance. We also generated $4 billion in operating cash flow in
the quarter, another record.”
While the Chairman might be high on his company, the street is
actually disappointed with the results. In afterhours
trading, CSCO is down over 4%. Yet, Mr. Chambers did later
concede (during analyst’s conference call) that his company is
amidst, “what continues to be a challenging and inconsistent global
macroeconomic environment." Moreover, the CEO stated that he
did not see this changing anytime in the short term.
Zacks Investment Research will post a detailed earnings report
tomorrow morning.
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
JUNIPER NETWRKS (JNPR): Free Stock Analysis Report
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