Will Today Be Chambers' Final Cisco (CSCO) Speech as CEO?
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Revenue Growth %: -14.8%
Overall Analyst Rating:
NEUTRAL (
Up)Dividend Yield: 3.3%
Revenue Growth %: -14.8%
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Cisco (Nasdaq: CSCO) has come under much scrutiny over the last year or so, as the company has struggled to cope with increased competition and an economic downturn that just won't go away.
And CEO John Chambers has been in the crosshairs throughout the entire ordeal.
With Chambers set to address the crowd at Cisco's Annual Financial Analyst Conference, traders are speculating whether this will be the last time he speaks as the CEO.
Chambers has been at the helm of Cisco over the last 16 years, aiming to guide the networking and switch giant through recession and expansion. According to Reuters, Chambers still has support of the Board despite the stock falling 33 percent from $24 in November of last year to $16 or so recently. Notably, the stock has crept up about 20 percent since suffering further losses in an admittedly unusual August trading month, where markets saw increased volatility on U.S. ratings and European debt issues.
But investors haven't been asking themselves if Chambers will retire. The question now is when. And potential candidates aren't waiting around to find out.
Hopefuls who have begun lobbying include former Hewlett-Packard (NYSE: HPQ) Chief, and now Oracle (Nasdaq: ORCL) President Mark Hurd, as well as Cisco's own Charles Giancarlo, Mike Volpi, Gary Daichendt and James Richardson, Reuters notes. Other names mentioned include Juniper Networks (Nasdaq: JNPR) CEO Kevin Johnson, H-P executive David Donatelli, and former McAfee CEO Dave DeWalt.
With several quarters of lowered expectations, Chambers isn't likely to leave before a positive quarter comes about. Sources have said Chambers is looking for at least one to leave on a high note. In May, Cisco announced a reorganization in which 11,500 workers would be losing their jobs, as well as several at the top of the Cisco food chain.
Chambers even admitted Cisco had lost its way, ceding valuable market share to leaner, hungrier rivals like Juniper, F5 (Nasdaq: FFIV), Check Point Software (Nasdaq: CHKP), and Riverbed Technology (Nasdaq: RVBD), and lets not forget H-P as well.
Other criticism centered around Cisco's focus. Aiming to improve shareholder value through taking cost-cutting measures, some question why Cisco hadn't conducted more M&A deals in one of the best, and most fruitful, tech markets seen in years.
But Reuters notes sources at Cisco said Chambers is more likely to step down if he can become Chairman, a move which might put potential candidates seeking autonomy off.
Investors and traders will be focusing on the Analyst Meeting Tuesday, looking for any signs of a change at the top.
Shares are currently 0.3 percent lower in pre-market trading Tuesday morning.
And CEO John Chambers has been in the crosshairs throughout the entire ordeal.
With Chambers set to address the crowd at Cisco's Annual Financial Analyst Conference, traders are speculating whether this will be the last time he speaks as the CEO.
Chambers has been at the helm of Cisco over the last 16 years, aiming to guide the networking and switch giant through recession and expansion. According to Reuters, Chambers still has support of the Board despite the stock falling 33 percent from $24 in November of last year to $16 or so recently. Notably, the stock has crept up about 20 percent since suffering further losses in an admittedly unusual August trading month, where markets saw increased volatility on U.S. ratings and European debt issues.
But investors haven't been asking themselves if Chambers will retire. The question now is when. And potential candidates aren't waiting around to find out.
Hopefuls who have begun lobbying include former Hewlett-Packard (NYSE: HPQ) Chief, and now Oracle (Nasdaq: ORCL) President Mark Hurd, as well as Cisco's own Charles Giancarlo, Mike Volpi, Gary Daichendt and James Richardson, Reuters notes. Other names mentioned include Juniper Networks (Nasdaq: JNPR) CEO Kevin Johnson, H-P executive David Donatelli, and former McAfee CEO Dave DeWalt.
With several quarters of lowered expectations, Chambers isn't likely to leave before a positive quarter comes about. Sources have said Chambers is looking for at least one to leave on a high note. In May, Cisco announced a reorganization in which 11,500 workers would be losing their jobs, as well as several at the top of the Cisco food chain.
Chambers even admitted Cisco had lost its way, ceding valuable market share to leaner, hungrier rivals like Juniper, F5 (Nasdaq: FFIV), Check Point Software (Nasdaq: CHKP), and Riverbed Technology (Nasdaq: RVBD), and lets not forget H-P as well.
Other criticism centered around Cisco's focus. Aiming to improve shareholder value through taking cost-cutting measures, some question why Cisco hadn't conducted more M&A deals in one of the best, and most fruitful, tech markets seen in years.
But Reuters notes sources at Cisco said Chambers is more likely to step down if he can become Chairman, a move which might put potential candidates seeking autonomy off.
Investors and traders will be focusing on the Analyst Meeting Tuesday, looking for any signs of a change at the top.
Shares are currently 0.3 percent lower in pre-market trading Tuesday morning.
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