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Stock Market & Financial Investment News

News Breaks
August 14, 2014
12:31 EDTCSCO, JNPRCisco shares trade lower as company announces 6,000 job cuts
Shares of computer networking and communications company Cisco Systems (CSCO) are trading lower this afternoon after the company announced fourth quarter results, provided first quarter guidanced and announced that it is cutting 8% of its workforce. WHAT'S NEW: Cisco reported better-than-expected Q4 earnings per share of 55c and revenue of $12.4B against estimates of 53c and $12.14B, respectively. Product revenue for the quarter was $9.53B and service revenue came in at $2.8B. The company said cash flow from operations for the quarter was $3.6B compared with $3.2B for the third quarter and $4B for the year-ago period. Looking ahead, Cisco forecast Q1 adjusted EPS of 51c-53c against estimates of 53c and Q1 adjusted operating margin of 27.5%-28.5%. Revenue for the quarter is expected to be flat to up 1%, the company said on its conference call. The revenue consensus estimate for Q1 revenue is $12.08B. Cisco also sees Q1 adjusted gross margin of 61%-62%. WHAT'S NOTABLE: Chief Executive Officer John Chambers announced a "limited restructuring" across several areas of its business, in which 8% of its workforce, or 6,000 jobs will be cut. The company expects to take a charge of up to $700M in fiscal year 2015 on the restructuring. The company announced in August 2013 that it would cut approximately 4,000 jobs. Chambers said the company said not see emerging markets growth for several quarters. ANALYST OPINION: This morning, Wells Fargo analysts continued to see value in Cisco shares, believing there will be a return to growth likely in Q1 and said that the company's guidance is "conservative." The firm cut its fiscal year 2015 EPS estimate to $2.19 from $2.26, and introduced its fiscal year 2016 EPS estimate of $2.33. Piper Jaffray was also positive on Cisco shares, saying the company is making good strides with cost controls and capital allocation. It seems an attractive dividend yield and a share buyback will provide little downside risk. Citigroup analysts, meanwhile, believes that "at best," Cisco remains a flat to low-single-digit grower with little upside to operating margin and stable GM, although the company is managing the headwinds "as best as it can." The firm also fears that the switch rebound cycle that is driving U.S. enterprise and commercial will have run its course by the time service provider and emerging markets begin to grow. PRICE ACTION: In intra-day trading, shares of Cisco dropped 67c, or 2.62%, to $24.54. OTHERS TO WATCH: Cisco’s competitor Juniper Networks (JNPR) is down almost 2% to $23.15.
News For CSCO;JNPR From The Last 14 Days
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August 28, 2015
16:18 EDTCSCOCisco CEO Charles Robbins adopts 10b5-1 trading plan
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07:17 EDTJNPR, CSCOCoomunication tech stock drop likely a buying opportunity, says Wells Fargo
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August 25, 2015
09:35 EDTCSCOActive equity options trading on open
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August 21, 2015
12:13 EDTCSCO, JNPRBrocade soars after Q3 results top estimates
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August 18, 2015
11:01 EDTCSCOScansource exercises LOI to acquire assets of KBZ
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09:04 EDTJNPRJuniper selected by Joe Gibbs Racing to speed data center network transformation
Juniper Networks announced that four-car NASCAR team Joe Gibbs Racing selected its next-generation switching and security solutions to rev up the team's aging network infrastructure for better performance on and off the track.
August 17, 2015
11:18 EDTCSCOEZchip to supply chips to cloud data centers, Bloomberg says
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10:09 EDTCSCOOn The Fly: Analyst Downgrade Summary
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07:39 EDTCSCOTMC to hold a conference
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06:45 EDTCSCOCisco downgraded to Equal Weight from Overweight at Morgan Stanley
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