44.20 +0.10 (0.23%)
After hours: 6:00PM EST
|Bid||44.00 x 3200|
|Ask||44.15 x 3100|
|Day's range||43.80 - 44.18|
|52-week range||40.25 - 58.26|
|Beta (3Y monthly)||1.20|
|PE ratio (TTM)||17.55|
|Earnings date||12 Feb 2020|
|Forward dividend & yield||1.40 (3.19%)|
|1y target est||52.12|
While Cisco Systems, Inc. (NASDAQ:CSCO) shareholders are probably generally happy, the stock hasn't had particularly...
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(Bloomberg) -- Hewlett Packard Enterprise Co. reported sales that fell short of Wall Street estimates, signaling that corporate demand for data-center hardware remains in a slump amid slowing economic growth.Revenue dropped 9.1% to $7.22 billion, the San Jose, California-based company said Monday in a statement. It marked the fourth consecutive quarter of year-over-year sales declines. Analysts, on average, projected $7.42 billion.HPE Chief Executive Officer Antonio Neri is trying to increase sales by moving the server maker to a subscription business model. By 2022, all HPE hardware and software will be available as a service or via a pay-per-use model. The company recently bought Cray Inc. to bolster its position in the supercomputer market. HPE has cut expenses, including the size of its workforce, as part of a restructuring meant to modernize the company and boost its profit margin.Like other makers of servers and storage hardware, HPE has been contending with slowing economic growth and geopolitical tensions around the globe, which generally make businesses more cautious about buying new hardware. Cisco Systems Inc. said this month that customers had slowed down or reduced new purchases due to business uncertainty.HPE generates about two-thirds of its quarterly revenue from overseas sales.“Global trade tension is causing uncertainty, which results in longer sales cycles,” Neri said in an interview. He also pointed to other geopolitical factors causing some clients to pause orders.“We have put the focus on particular areas where we want to grow faster,” Neri said, citing businesses including high-performance computing and the company’s GreenLake hybrid cloud-computing product that lets customers pay for services based on how much they use. “That’s why we’re confident. We have a better portfolio and we have better coverage even though we see weakness in the market.”HPE shares declined about 4% in extended trading after closing at $17.45 in New York. The stock has increased 32% this year.“Hewlett Packard Enterprise’s sales growth will likely remain anemic for fiscal 1H amid seasonal weakness and pressured corporate capital spending,” Anand Srinivasan, a Bloomberg Intelligence analyst, said in a note before the results were released.Server sales dropped 13% to $3.23 billion and storage hardware revenue fell 12% to $848 million in the quarter ended Oct. 31.Neri reiterated his pledge that the company will deliver 1% to 3% sales growth in the next three years.HPE posted fiscal fourth-quarter net income of $480 million, or 36 cents a share, from a loss of $757 million, or 53 cents. Profit, excluding some items, was 49 cents a share. Analysts projected 46 cents.Adjusted profit will be 42 cents to 46 cents per share in the current period. Analysts on average expected 43 cents, according to data compiled by Bloomberg. The company also affirmed its recently issued fiscal 2020 outlook of $1.78 to $1.94 per share.(Updates with comments from CEO in the sixth paragraph.)To contact the reporter on this story: Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew Pollack, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Hewlett Packard Enterprise (HPE) shares have surged 34% in the last three months. Now the question is will HPE's recent run of success continue after it reports its quarterly financial results on Monday, November 25?
A scheme for entrepreneurs founded by Prince Andrew has taken down the logos of its corporate sponsors from its website, as firms and charities distance themselves from the British royal over a sex scandal. Andrew, Queen Elizabeth's second son, denies an allegation that he had sex with a 17-year-old girl procured for him by his friend Jeffrey Epstein, who killed himself in a U.S. prison in August while awaiting trial on sex trafficking charges. The scandal has escalated since Andrew's rambling denials and explanations in a disastrous TV interview aired on Saturday left many viewers incredulous, and his apparent lack of compassion for Epstein's victims drew widespread condemnation.
(Bloomberg) -- Cisco Systems Inc. sued three former senior employees whom it accused of stealing thousands of files containing confidential information when they defected to a competitor.Shortly after resigning their jobs at Cisco this year, the three men joined an unidentified company that competes “in the IP telephony, headset, video, and collaboration space,” according to the complaint.Cisco claims that Wilson Chung, who was one of its principal engineers, downloaded more than 3,000 internal documents containing trade secrets, including information about the company’s contributions to 5G technology and its design specification for a video-conferencing prototype, before he left in February.Chung is accused of recruiting another Cisco engineer, James He, to join the competitor. At that point, He started photographing confidential Cisco documents with his iPhone and copying other company records and emails, according to the complaint filed Monday in federal court in San Jose, California.Cisco said that Jedd Williams, who was one of its sales executives, sought employment with the same competitor, telling one of its executives in an email that he could “hit the ground running” using “a play I drove VERY successfully at Cisco ... and a play that I’d like to repeat again.”In mid-October, on the same day he uploaded 12 Cisco sales forecasting spreadsheets, he announced he was leaving the company to work at his church and focus on personal issues, according to the complaint. “Mr. Williams joined the same competitor shortly thereafter.”LinkedIn profiles for men with the same names show that all three, after long stints at Cisco, now work at San Jose-based Poly, a developer of video, voice and content collaboration and communication technology.Poly declined to comment. Cisco didn’t respond to a request for comment.The case is Cisco Systems Inc. v. Chung, 19-cv-07562, U.S. District Court, Northern District of California (San Jose).(Updates with allegations in third paragraph.)To contact the reporter on this story: Robert Burnson in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: David Glovin at email@example.com, Peter Blumberg, Joe SchneiderFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Cisco Systems, Inc. (NASDAQ:CSCO) shares fell 7.7% to US$45.09 in the week since its latest first-quarter results. It...
Cymplify's IoT cyber security technology will help Check Point (CHKP) to proactively combat IoT-related threats and vulnerabilities without affecting critical operations.
Hopes of a U.S.-China trade deal turned world stock markets and other risk assets higher on Friday, though an escalating wave of global protests from Hong Kong to Chile left some deep scars. Europe's main bourses and Wall Street futures followed Asia higher after White House economic adviser Larry Kudlow said on Thursday that the United States and China were nearing a deal and talking every day.
(Bloomberg Opinion) -- The global bond market rallied for a second consecutive day on Thursday in an awkward development for the growing chorus of voices that have cropped up the last few weeks contending that the synchronized global slowdown was over. From China to Germany, and from Cisco Systems Inc. to freight shipments, the latest data show it’s too soon to turn optimistic.In China, industrial output rose 4.7% in October from a year earlier, below the median estimate of 5.4%. Germany did post a surprise expansion in its gross domestic product for the third quarter, but that came with plenty of caveats. For one, the increase was only 0.1%, and the contraction for the second quarter was deeper than initially reported — negative 0.2% versus negative 0.1%. In the U.S., economists were passing around the latest Cass Freight Index for October, which fell 5.9% to mark its 11th consecutive year-over-year decline. This gauge has been around since 1995 and tracks freight volumes and expenditures by hundreds of companies in North America conducting $28 billion of transactions annually. More important, the compilers of the index noted in the latest survey that the index “has gone from ‘warning of a potential slowdown’ to ‘signaling an economic contraction.’” Cisco is not in the freight business, but comments by Chief Executive Officer Chuck Robbins late Wednesday after the computer company released fiscal second-quarter results echoed the sentiment in the freight industry. “Just go around the world and you see what’s happening in Hong Kong, you look at China, what’s happening in D.C., you’ve got Brexit, uncertainty in Latin America,” he said on a conference call with investors and analysts. “Business confidence suffers when there’s a lack of clarity, and there’s been a lack of clarity for so long that it’s finally come into play.”Maybe the global economy isn’t worsening, but it’s too soon to say an upswing is underway. Despite the sell-off in the bond market since September, yields are still showing caution. Yields on bonds worldwide as measured by the Bloomberg Barclays Global Aggregate Index stand at 1.45%, which is closer to its all-time low of 1.07% in 2016 than last year’s high of 2.27% in November.AWASH IN MORE DEBTThe Institute of International Finance came out with its quarterly look at the mountain of global debt, concluding that it rose by about $7 trillion in the first half of the year to a record of just more than $250 trillion. That increase is more double the $3.3 trillion expansion for all of last year. It pegs global debt, which it sees expanding to $255 trillion by the end of the year, at a lofty 320% of global GDP. It’s no surprise that the world is awash in debt, but yields show there seems to be a dearth of it for the public because of massive purchases by central banks. As of October, the collective balance-sheet assets of the Federal Reserve, European Central Bank, Bank of Japan and Bank of England stood at 35.7% of their countries’ total GDP, up from about 10% in 2008. Still, this is no time to be complacent. The IIF points out that much of the growth in debt has come in emerging markets, which is generally considered riskier than that of developed economies and where central banks are not doing things like quantitative easing. This could become an issue relatively quickly; the IIF pointed out that $9.4 trillion of bonds and syndicated loans from emerging markets come due by the end of 2021.CORPORATE CASH SHRINKSThe latest doubts about the strength of the economy kept the S&P 500 Index little changed for a second consecutive day. Perhaps that’s for the better because falling interest rates and bond yields are perhaps the single-biggest reason equities are up 23.4% this year in the absence of earnings growth. The second is probably share repurchases. But a new report from Societe General SA raises concern that the cash companies use to fund those buybacks is being depleted. “A boon for U.S. share buybacks” has left companies with less cash in their coffers, Societe Generale strategists Sophie Huynh and Alain Bokobza wrote in a report. Cash and money-market investments held by companies in the S&P 500 peaked in 2018’s first quarter on a per-share basis before falling 5.3% through the third quarter of this year, according to Bloomberg News’s David Wilson. S&P 500 companies have bought back the equivalent of 22% of their market value since 2010, the Societe Generale strategists noted in their report.CHILEAN CRISIS ENTERS NEW PHASEThe chaos in Chile, long known as the safest bet in Latin America, has become so bad that not even direct intervention by the nation’s central bank was able to reverse the slide in the peso. The currency fell about 1% Thursday, bringing its slide to 11.4% since mid-October. That’s the worst of the 31 major currencies tracked by Bloomberg and more than five times the next biggest loser, the Hungarian forint. What should have investors worried is that the peso depreciated even after the central bank announced a $4 billion currency swap program to ease liquidity in the market amid the worst civil unrest in a generation. “I don’t think it will help stop the sell-off in any way,” Brendan McKenna, a currency strategist at Wells Fargo, told Bloomberg News in reference to the swaps program. “There has to be some breakthrough on the political front for the currency to stabilize.” Foreign investors have been especially rattled since the government said Sunday that it backed plans to rewrite the constitution in response to four weeks of riots and protests in support of better pensions, wages, education and health care. If that were to happen, it’s possible the government would swing too far to the populist left to the detriment of the economy. FOLLOW THE CLIMATE CHANGE MONEYDespite the overwhelming evidence about climate change, there is still an alarming number of deniers. But if it was really all a big hoax or overblown, then why are the world’s biggest, most influential investment firms steering away from areas that are likely to be hit the hardest, such as the coasts? Goldman Sachs Group Inc. is considering real estate markets including Denver; Austin, Texas; and Nashville, Jeffrey Fine, a managing director at the firm’s merchant-banking division, said Thursday at a conference hosted by the NYU School of Professional Studies. Fine may not have specifically cited climate change, but according to Bloomberg News’s Gillian Tan, he did note that more companies and young people are moving away from the coasts. The Fed held its first conference on climate change last week in San Francisco, with one central bank official saying it has the potential to “displace people permanently” amid damaging wildfires in California and storms punishing the Eastern Seaboard. About 3 billion people — or some 40 percent of the world’s population — live within 200 kilometers (124 miles) of a coastline, according to Bloomberg News. It’s projected that by 2050 more than 1 billion will live directly at the water’s edge.TEA LEAVESThe idea that the U.S. consumer was strong and carrying the economy took a hit a month ago when Commerce Department data showed that retail sales in September fell unexpectedly. The 0.3% decline from August was directly opposite the 0.3% advance expected based on the median estimate of economists surveyed by Bloomberg. That’s why Friday’s update from the government on October retail sales is so critical, especially heading into the holiday sales season. Economists are calling for a 0.2% rebound. Bloomberg Economics isn’t so optimistic, saying that decelerating wage growth suggests household demand will moderate. It is forecasting no change in spending. Although the headline number will get the attention, the smart money will be looking at sales among a control group that are used to calculate GDP and exclude food services, auto dealers, building-material stores and gas stations. By that measure, sales are seen rising 0.3% from no change in September.DON’T MISS Stock Investors Could Use a Refresher on the Basics: Nir Kaissar You Care About Earnings? The Stock Market Doesn’t: John Authers Too Many Young American Men Still Aren’t Working: Justin Fox Brazil’s Politics and Economics Are Growing Apart: Mac Margolis Matt Levine's Money Stuff: You Can Buy Almost All the StocksTo contact the author of this story: Robert Burgess at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Robert Burgess is an editor for Bloomberg Opinion. He is the former global executive editor in charge of financial markets for Bloomberg News. As managing editor, he led the company’s news coverage of credit markets during the global financial crisis.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The benchmark S&P 500 stock index posted a slim gain to end with a record closing high on Thursday, as a dour forecast from tech stalwart Cisco Systems was offset by a strong report from big box retailer Walmart. The Dow index ended barely negative, after posting a closing high on Wednesday, while the Nasdaq also ended fractionally lower.
The Dow index ended barely negative, after posting a closing high on Wednesday, while the Nasdaq also ended fractionally lower. Cisco shares tumbled 7.3% after the network gear maker forecast second-quarter revenue and profit below expectations as increasing global economic uncertainties kept clients away from spending more on its routers and switches. Cisco's share decline weighed the most on the major indexes and helped drag the technology sector down 0.1%.
Wall Street's main indexes slipped from near record levels on Thursday, as a dour forecast from tech stalwart Cisco Systems raised fresh questions about the global economy's health and overshadowed a strong report from big box retailer Walmart. Cisco shares tumbled 7.8% after the network gear maker forecast second-quarter revenue and profit below expectations as increasing global economic uncertainties kept clients away from spending more on its routers and switches.
The latest U.S.-China trade war setback. Walmart's blowout quarterly earnings and early Disney+ success. Other quarterly results. And why Douglas Dynamics (PLOW) is a Zacks Rank 1 (Strong Buy) stock at the moment...
Cisco Systems dampened investors' mood when it reported first-quarter fiscal 2020 results as it sparked fears of a slowdown in global tech spending with a bleak outlook.
Investing.com – Wall Street was slightly lower on Thursday as concerns about global economic slowdown and a reported snag in U.S.-China trade discussions sent a wave of worry through the market.
The S&P 500 and the Dow Jones Industrial Average were unchanged on Thursday, but still hovered near record levels as a dour forecast from Cisco offset gains in Walmart after its strong outlook. Cisco Systems Inc fell 7.6% after the network gear maker said current-quarter revenue would drop 3% to 5% amid declining global spending on its routers and switches, some of which are made in China.