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Stock Market & Financial Investment News

News Breaks
August 14, 2014
12:31 EDTJNPR, CSCOCisco 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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June 29, 2015
09:35 EDTCSCOActive equity options trading on open
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June 25, 2015
07:23 EDTCSCOHouse Energy & Commerce Committee to hold a hearing
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June 24, 2015
08:31 EDTCSCOInvestors should weigh waiting for better Arista entry point, says Pacific Crest
Pacific Crest says that Arista's (ANET) new Cloudvision software should have only a minor impact on its 2H15 results. The firm recommends that investors consider waiting for a lower entry point before buying the stock. The firm thinks that such an entry point could materialize during the company's trial versus Cisco (CSCO) this summer. It keeps an $88 price target and Overweight rating on Arista..
June 23, 2015
08:04 EDTCSCONRG Renew to develop 20MW solar energy facility for Cisco
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07:41 EDTCSCORed Hat to hold a summit
Red Hat Summit 2015 is being held in Boston on June 23-26 with webcasted company presentations to begin on June 23 at 4 pm; not all presentations may be webcasted. Webcast Link
07:33 EDTCSCOBlackBerry, Cisco sign broad patent cross-licensing agreement
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05:33 EDTJNPRJuniper, Ruckus Wireless announce new technology alliance
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June 22, 2015
08:08 EDTCSCORed Hat names Frank Calderoni as EVP, operations, CFO
Red Hat (RHT) announced that Frank Calderoni will join the company as EVP, operations and CFO. Calderoni will be responsible for leading the company’s global finance organization and the leadership and management of IT and operations teams, reporting to Red Hat president and CEO, Jim Whitehurst. Calderoni served as EVP and CFO at Cisco Systems (CSCO) for seven years and most recently served as an executive advisor. Calderoni succeeds Red Hat executive vice president and CFO Charlie Peters, whose planned retirement was announced in December 2014, and who will remain with Red Hat until July 31. Calderoni joins Red Hat on June 22, 2015, and will succeed Peters as CFO effective July 13, 2015.
June 18, 2015
16:54 EDTCSCOCisco announces stock trading plans for executives
On June 12, John T. Chambers, Chairman and CEO of Cisco, adopted a pre-arranged stock trading plan to (i) exercise up to 1,775,000 Cisco stock options set to expire in September and November of 2016, and sell the acquired shares of Cisco stock, and (ii) sell up to 500,000 shares of Cisco stock from other shareholdings. The plan is scheduled to terminate in September 2016. On June 17, Charles Robbins, incoming CEO of Cisco, modified a pre-arranged stock trading plan originally entered into and disclosed in March 2015. Sales under the modified portion of the plan may begin in September 2015. Under the plan, Mr. Robbins may (i) exercise up to 42,000 Cisco stock options set to expire in September 2016, and sell the acquired shares of Cisco stock, and (ii) sell up to 90,000 shares of Cisco stock from other shareholdings. The plan is scheduled to terminate in December 2015.
09:31 EDTCSCOCisco plans to make $60M investment in India, Economic Times reports
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07:55 EDTCSCONimble Storage downgraded to Hold from Buy at Wunderlich
Wunderlich downgraded Nimble Storage (NMBL) to Hold citing the recent appreciation in shares, which the firm attributes to "heightened awareness of acquisition potential." The firm views Nimble as a "nice fit" for Cisco (CSCO), but believes some amount of a takeover premium is priced into the stock. It keeps a $33 price target for shares.
07:04 EDTJNPRJuniper upgraded to Outperform from Neutral at Wedbush
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June 17, 2015
16:12 EDTCSCOCrossroads Systems updates on patent litigation after Markman hearing
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09:48 EDTCSCOCisco to invest $10B in China innovation and development
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08:25 EDTCSCOCisco to participate in a tech talk with SunTrust
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June 16, 2015
09:36 EDTCSCOActive equity options trading on open
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