Needham & Company Remains Sidelined on Cisco Systems (CSCO) Following 4Q and Guide Down
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Needham & Company reiterated a Hold rating on Cisco Systems (NASDAQ: CSCO) following the company's 4Q earnings report. Cisco noted a 6% decline in Service Provider orders and stated on the call they had little visibility in this sector. Guidance of down 1% to up 1% pro-forma for the revenues implies revenues of between $12,298-12,394MM below prior revenue forecasts of $12,546MM for the October quarter.
Analyst Alex Henderson commented, "Cisco reports a respectable quarter but offers a soft guide on concerns about Service Provider and Emerging Markets. Enterprise and Commercial orders were solid. We are slightly trimming revenues and maintaining our EPS despite a 7% reduction in force at a cost of $700MM. Call us old school, but shouldn’t a company cutting 7% of its staff see some benefit to EPS? Cisco announced it is cutting 5,500 positions and “reinvesting” the benefits into its business. This is at a cost of $700 million."
Shares of Cisco closed at $30.72 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BMO Capital Reiterates Outperform on Costco Wholesale (COST) Following 1Q Report
- lululemon athletica (LULU): Good Quarter But Can It Continue - Jefferies
- BMO Capital Remains Sidelined on United Natural Foods (UNFI) Following 1Q EPS Miss
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View
Related EntitiesNeedham & Company, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!