|Bid||46.34 x 900|
|Ask||46.35 x 4000|
|Day's range||46.31 - 46.84|
|52-week range||43.40 - 58.26|
|Beta (5Y monthly)||1.17|
|PE ratio (TTM)||18.07|
|Earnings date||12 May 2020 - 17 May 2020|
|Forward dividend & yield||1.44 (3.07%)|
|Ex-dividend date||01 Apr 2020|
|1y target est||52.50|
Earnings reports from NVIDIA and Cisco, a stay order on the JEDI contract, Facebook's app to compete with Pinterest and other stories are covered in this daily.
(Bloomberg) -- The U.S. raised the stakes in its battle with Huawei Technologies Co., using a law historically associated with prosecuting mafia figures to claim the Chinese company engaged in decades of intellectual property theft.Huawei, the world’s largest maker of telecommunications equipment, and Chief Financial Officer Meng Wanzhou had already faced criminal charges. The fresh allegations, announced Thursday, up the ante by including racketeering conspiracy, increasing the potential punishment. They come as the global battle for supremacy in fifth-generation wireless technology, or 5G, is joined.Huawei broke the law “to drastically cut its research and development costs and associated delays, giving the company a significant and unfair competitive advantage,” the Justice Department said in a statement. The company even launched a bonus program to reward employees who got their hands on confidential information from competitors, prosecutors said.The new charges depict a company that won international standing by stealing trade secrets, evading U.S sanctions and lying to authorities. They are likely to increase tensions between Beijing and Washington, which has accused Huawei of spying for the Chinese government, even as Huawei won a brief reprieve from a proposed ban on buying parts.The indictment doesn’t name the businesses from which Huawei allegedly stole intellectual property, but details of the allegations match descriptions of companies including Cisco Systems Inc., Motorola Inc. and Cnex Labs Inc.“The indictment paints a damning portrait of an illegitimate organization that lacks any regard for the law,” Senator Richard Burr of North Carolina, the Republican chairman of the Intelligence Committee, and Senator Mark Warner of Virginia, the panel’s Democratic vice-chairman, said in an emailed statement. “Intellectual property theft, corporate sabotage and market manipulation are part of Huawei’s core ethos and reflected in every aspect of how it conducts business.”Huawei doesn’t “abide by Western business practices,” Rob Spalding, a Washington-based technology and security expert at the Hudson Institute who served on the National Security Council, said in an email. “Which is why many U.S. companies are no longer competitive in the global marketplace.”Read More: Why 5G Mobile Arrives With a Subplot of EspionageHuawei, in turn, has accused the U.S. of orchestrating a campaign to intimidate its employees and launching cyberattacks to infiltrate its internal network. China’s Ministry of Foreign Affairs has urged the U.S to “stop unreasonably targeting Huawei and other Chinese enterprises.”The new indictment “is part of the Justice Department’s attempt to irrevocably damage Huawei’s reputation and its business for reasons related to competition rather than law enforcement,” a representative of the company said Thursday. “These new charges are without merit and are based largely on recycled civil disputes” from the last 20 years “that have been previously settled, litigated and, in some cases, rejected by federal judges and juries.”Huawei was previously accused of violating U.S. sanctions against Iran and North Korea. Meng, the CFO, was charged with fraud last year, with the case rippling into Canada, where she is currently fighting extradition to the U.S. Meng’s lawyers have argued in court that their client did nothing wrong.The U.S. said Huawei stole trade secrets, including copyrighted works, source code and user manuals for internet routers, to “grow and operate” its business. The company swiped antenna and robot testing technology, prosecutors said.Then, they said, it doubled down.“When confronted with evidence of wrongdoing, the defendants allegedly made repeated misstatements to U.S. officials, including FBI agents and representatives from the U.S. House Permanent Select Committee on Intelligence, regarding their efforts to misappropriate trade secrets,” they said.Read More: U.S. Ramps Up Huawei Fight With Iran, Trade-Secret ChargesThe U.S. dates the thefts to 2002. But the government has also linked the 2016 alleged theft of a computer chip from a California tech company for Huawei with the latest charges.Bo Mao, a Xiamen University professor, was charged in September with stealing trade secrets. His lawyers said in a court filing Thursday that the prosecution is related to the Huawei case.In the new indictment, the government is wielding some prior allegations of wrongdoing, like Huawei’s alleged theft of a phone-testing robot developed by T-Mobile US Inc., to build a more muscular case. The U.S. alleged that a Huawei engineer secretly took photos of T-Mobile’s robot, Tappy, took measurements of parts and even stole a piece of it. When T-Mobile threatened to sue, the U.S. said, Huawei blamed “rogue actors” within the company.Intellectual property theft “explains a lot of Huawei’s success,” said Jim Lewis, of the Technology Policy Program at the Center for Strategic and International Studies in Washington. “Huawei is the poster child for China’s commercial spying.”The case is U.S. v. Huawei Technologies Co., 18-cr-457, U.S. District Court, Eastern District of New York (Brooklyn).Read MoreHuawei Pleads Not Guilty to Bank Fraud Charges in New YorkU.S. Accuses Huawei of Trade-Secret Theft, Defrauding BanksProsecutors Say Government Used FISA to Watch HuaweiU.S. Charges Chinese Professor Accused of Theft to Help Huawei(Updates with Bo Mao case)\--With assistance from Bob Van Voris and Natalie Obiko Pearson.To contact the reporters on this story: Patricia Hurtado in Federal Court in Manhattan at firstname.lastname@example.org;Alyza Sebenius in Washington at email@example.com;Todd Shields in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: David Glovin at email@example.com, Joe Schneider, Peter BlumbergFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Technology shares led all three major U.S. stock averages lower, with the blue-chip Dow suffering the largest percentage loss. Hopes that the coronavirus epidemic could be on the wane were soured by a spike in fatalities, with an additional 242 bringing China's coronavirus death toll to 1,367. "On a day like today investors just have to take it in stride," said Charlie Ripley, senior market strategist for Allianz Investment Management in Minneapolis.
The S&P 500 reversed its losses on Thursday as investors weighed mixed news on the coronavirus and a spate of corporate earnings. While a drop in Cisco Systems Inc shares helped keep the blue-chip Dow in the red, the S&P 500 and the Nasdaq rebounded and were both on track to eke out their fourth consecutive record closing highs.
Cisco's (CSCO) second-quarter fiscal 2020 results reflect weakness in the service provider, enterprise and commercial end markets as well as sluggish customer spending.
For an event meant to showcase the power of telecoms, cancelling this year's Mobile World Congress in Barcelona without a back-up plan has perplexed many in the trillion-dollar sector. Wednesday's decision to call off the telecoms industry's biggest annual gathering over fears of coronavirus, which has yet to reach mainland Spain, has left a hole in marketing budgets and dealt a $500 million blow to the local economy. Sony and Nokia said after pulling out of the event that they would hold product launches online instead, while South Korea's Samsung Electronics showcased a new folding phone at separate event in San Francisco last week.
(Bloomberg) -- Cisco Systems Inc. said revenue this quarter may decline more than analysts projected, indicating that corporations are still cautious about increasing spending on their computer networks.Sales in the third quarter, which ends in April, will drop as much as 3.5% from a year earlier, the San Jose, California-based company said Wednesday in a statement. Analysts on average expected revenue of $12.6 billion, in line with the midpoint of Cisco’s forecast range. Adjusted profit will be 79 cents to 81 cents a share. Analysts had projected 80 cents, according to data compiled by Bloomberg.Cisco is predicting a second consecutive quarterly revenue contraction, showing that its main business of selling expensive networking hardware is still struggling amid tepid spending by corporations and government agencies. While a push into software and services had eased the company’s reliance on hardware, such as switches and routers, that machinery still provides the biggest chunk of revenue. Cisco’s customers in certain markets and areas are putting off signing orders, Chief Executive Officer Chuck Robbins said.“It’s just lower close rates and taking longer to get closed,” he said in an interview. “That tells you it’s a pause and not a cliff.”Cisco shares declined about 4% extended trading. They had earlier closed at $49.93 in New York, leaving them up 4.3% in the last 12 months. That compares with a 23% gain in the S&P 500 Index.The company said net income in the fiscal second quarter rose to $2.88 billion, or 68 cents a share, from $2.82 billion, or 63 cents, a year earlier. Revenue fell 4% to $12 billion. Excluding certain items, Cisco posted profit of 77 cents a share. On average, analysts were predicting profit of 76 cents on sales of $11.98 billion.Cisco’s hardware business generated sales of $6.53 billion in the period ended Jan. 25, a decline of 8% from a year earlier. Applications, its software unit, also dropped 8% to $1.35 billion and security revenue expanded 9% to $748 million.In Europe, orders would have increased if not for the U.K., where companies and the government held off. Similarly, in Asia, China revenue dropped 30%, Robbins said. Without that drag, Asia as a region would have shown growth. In the U.S., Cisco’s largest and most profitable region, the company was hurt by slower server sales and the ongoing decline in orders from phone and internet service providers.Robbins expressed his confidence in a rebound once issues including Brexit, trade and the health crisis in China are resolved.“There’s a lot of sprouts out there that lead me to continue to be optimistic,” he said.Cisco, whose gear handles much of the world’s internet data traffic, has said that telecommunications service providers have pared spending on computer networks. Many are devoting the bulk of their budgets to purchases of radio equipment to build out coverage of new fifth generation, or 5G, cellular networks. Once those networks have been built out and are generating traffic, investment will shift to the kind of gear Cisco makes, for connecting the computers that handle the data-processing element of wireless services.(Updates with CEO comments in the fourth paragraph.)To contact the reporter on this story: Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Alistair Barr at email@example.com, Andrew Pollack, Jillian WardFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Cisco (CSCO) delivered earnings and revenue surprises of 1.32% and 0.16%, respectively, for the quarter ended January 2020. Do the numbers hold clues to what lies ahead for the stock?
Cisco reported on Wednesday fiscal second-quarter results that topped consensus estimates, but offered a gloomy outlook on revenue. Cisco had reported EPS of $0.84 on revenue of $13.16 billion in the previous quarter. The company guided earnings in the range of 79 cents to 81 cents per share, with revenue expected to decline 1.5% to 3.5% in the fiscal third quarter year on year.
(Bloomberg) -- While tech giants are canceling plans to attend Barcelona’s Mobile World Congress this month, smaller firms don’t see it as an option.The show, which draws more than 100,000 attendees from around the world, is a critical meeting place for founders looking to attract new investors or cement manufacturing deals. Big name dropouts from the conference this year are stacking up: Facebook Inc. and Cisco Systems Inc. on Tuesday joined Intel Corp., MediaTek Inc., Ericsson AB, Sony Corp. and others in saying they’d canceled plans to attend the show.U.K.-based FX Technology, which sells a smartphone with a slide-out physical keyboard, was relying on MWC to help it win publicity after recent news that BlackBerry-branded devices may no longer be manufactured.“We’re also fundraising so it’s important to meet potential investors and distributors,” said Adrian Li Mow Ching, co-founder of FX Technology. “We’re making every effort to go still.”Read More: Top Mobile Conference Nears Cancellation Due to CoronavirusUnlike their smaller rivals, larger exhibitors are aided by their ability to generate their own news away from MWC. Samsung Electronics Co. unveiled its new flagship phones at simultaneous events in San Francisco and London this week, well ahead of the Barcelona gathering.Some, including Sony, said instead they’ll launch their latest products via internet livestreams. Video-calling potential investors or distributors remains “our contingency plan,” Ching said.Robert Vis, chief executive officer of enterprise communications startup MessageBird, said MWC is “super important” as networking at the show “fundamentally drives our business.”The Amsterdam-based company competes with the likes of Twilio Inc., helping firms chat with customers via messaging apps, SMS and calls. To make this happen, Vis said MessageBird needs to forge and maintain thousands of relationships with businesses, software companies and mobile carriers.“I founded the company in 2011 and we used to go with three people and run 20 meetings a day,” he said. This year he’d expected to take 40 people and hold about 500 meetings, before deciding Wednesday to pull out.“We’re a 200 million-euro ($218 million) business and this is the event of the year from a carrier perspective,” he said. “But we just don’t want to take any risk in terms of our employee safety.”The GSMA, which organizes MWC, confirmed as recently as Wednesday that the event is still going ahead.If it doesn’t, there are travel, accommodation, exhibition booths and entertainment costs deep-pocketed tech companies can afford to absorb in ways startups can’t always.MessageBird’s booth costs about 750,000 euros, in addition to travel and accommodation. But, Vis said, employee safety was more important than the numbers.Less CompetitionEven before the virus scare, big companies globally have begun looking for ways to generate buzz for their products without hitting the conference circuit.Sony, the world’s biggest console maker, skipped last year’s E3 video-game conference for the first time in almost a quarter-century. It said at the time it would focus on “exploring new and familiar ways to engage our community” instead.IDC analyst Raquel de Condado Marques said that large companies, such as Samsung Electronics Co., could ultimately benefit if MWC was halted.“Smaller vendors that were planning to launch their phones at MWC were counting on the visibility they could earn,” she said. “Therefore, Samsung will benefit from the fact that some of its competitors will lose the spotlight that MWC could potentially cast on them.”ShowStoppers, a popular companion event to MWC and other tech conferences, such as the annual Consumer Electronics Show in Las Vegas, gives smaller companies an opportunity to meet industry insiders and journalists at evening networking events.Many smaller companies take booths at these evening gatherings, which draw hundreds of industry insiders and journalists with promises of early access to cool tech from the main show, peppered with food, drinks and networking.On Tuesday, its organizer, Steve Leon, said the event was still planned to go ahead.“ShowStoppers continues to monitor news and will follow health and safety advisories from the World Health Organization, Spanish authorities, GSMA, airlines and other organizations, and the Chinese and other governments,” he wrote in an email to attendees.\--With assistance from Vlad Savov.To contact the reporter on this story: Nate Lanxon in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Giles Turner at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Investing.com - Our Senior Analyst Jesse Cohen gives us his top five things to know in financial markets on Wednesday, February 12, including:
Federal Reserve Chairman Jay Powell heads to Capitol Hill for another day of testimony in front of Congress and Cisco reports earnings Wednesday.
Strength in Security solutions, and robust adoption of Webex services are expected to have driven Cisco's (CSCO) second-quarter fiscal 2020 performance.