During the latest quarterly sales’ report, Cisco beat analysts’ expectations “even as it announced lay-offs”, while eyeing into cloud software for securing its future, whereby leading into “flat sales in the next quarter”.
During the fourth quarter, in the fiscal year of 2016, Cisco reported earnings of “$2.8bn”, equalling with fifty six percents “a share on an adjusted basis”, while the revenue rose to two percent and hit “$12.64bn”. However, the analysts’ forecast was of “quarterly EPS of 60 cents together with sales of $12.57bn”.
After seeing “low growth” over several quarters especially on the networking area, the management at Cisco thought of switching over to “cloud software”, whereby the company announced a job cut for “5,500” people, the same will begin to be implemented from the first quarter in the financial year of 2017.
Moreover, the Digitallook informs:
“Indeed, the San Jose, California-based outfit told investors to expect roughly flat sales over the coming quarter, guiding towards revenue growth of between -1.0% to 1.0% and adjusted EPS in a range of between 58 to 60 cents”.
Gross margins of quarterly product rose “from 59.0%” to “62.2%” in comparison to its previous year’s respective figures, while the operational costs came down by four percent. For the non-GAAP, there are expectations that the gross margins would remain within “63% to 64%”, over the period of next three-months. Moreover, JP Morgan’s analysts hiked up their “target price” to “$29.0”. The Finance Chief at Cisco, Kelly Kramer, stated:
"Our strong operational discipline has enabled us to drive growth and margin improvement as we continue to invest in key priority areas such as security, IoT, collaboration, next generation data-centre and cloud, while also delivering shareholder value”.
“[…] We expect to reinvest substantially all of the cost savings from these actions back into these businesses and will continue to aggressively invest to focus on our areas of future growth”.
References:
http://www.digitallook.com/
During the fourth quarter, in the fiscal year of 2016, Cisco reported earnings of “$2.8bn”, equalling with fifty six percents “a share on an adjusted basis”, while the revenue rose to two percent and hit “$12.64bn”. However, the analysts’ forecast was of “quarterly EPS of 60 cents together with sales of $12.57bn”.
After seeing “low growth” over several quarters especially on the networking area, the management at Cisco thought of switching over to “cloud software”, whereby the company announced a job cut for “5,500” people, the same will begin to be implemented from the first quarter in the financial year of 2017.
Moreover, the Digitallook informs:
“Indeed, the San Jose, California-based outfit told investors to expect roughly flat sales over the coming quarter, guiding towards revenue growth of between -1.0% to 1.0% and adjusted EPS in a range of between 58 to 60 cents”.
Gross margins of quarterly product rose “from 59.0%” to “62.2%” in comparison to its previous year’s respective figures, while the operational costs came down by four percent. For the non-GAAP, there are expectations that the gross margins would remain within “63% to 64%”, over the period of next three-months. Moreover, JP Morgan’s analysts hiked up their “target price” to “$29.0”. The Finance Chief at Cisco, Kelly Kramer, stated:
"Our strong operational discipline has enabled us to drive growth and margin improvement as we continue to invest in key priority areas such as security, IoT, collaboration, next generation data-centre and cloud, while also delivering shareholder value”.
“[…] We expect to reinvest substantially all of the cost savings from these actions back into these businesses and will continue to aggressively invest to focus on our areas of future growth”.
References:
http://www.digitallook.com/