Daily Management Review

Analysts Of JP Morgan Hike Up Their ‘Target Price’ For Cisco


08/30/2016


Cisco has plans to aim “flat sales” in the coming quarter.



Analysts Of JP Morgan Hike Up Their ‘Target Price’ For Cisco
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/







Science & Technology

Scientists Discover Largest Ever Under Water Volcanic Eruption Near New Zealand

Bitcoin craze increased load on the power grid to the maximum

PC And Server Performance Slows Down Due To Security Patches For Chip Flaws, Says Microsoft

Cybersecurity Firm Claims Cryptocurrency Monero Might Be Getting Funneled To North Korea University

The Way We Travel Will Be Changed by The Colorless, Odorless Gas - Hydrogen

EU's Big Change In Data Protection Rules Makes Businesses To Get Ready For It

Artificial Intelligence Helps NASA Find An 8th Planet In Orbit Of A Distant Star

Australian Research Success Could Mean Shatterproof Cell Phones Could Soon Be A Realityv

Top ten hi-tech events of the year

Tesla Considering Designing And Developing AI Chips On Its Own To Support Its Auto-Pilot Project

World Politics

World & Politics

Take and go away: new approach to refugees in Europe

Both The Korean Countries Will Come Together In Olympic Talks

Parties of Germany agreed on the migrants problem

Munich Re: Natural disasters caused record damage in 2017

High-Level Talks To Be Held Between North And South Korea In Over Two Years

Sexually Abusing Children Interests An Estimated 20,000 British Men, Shows Police Monitoring Of Chat Sites

2018 Could See An Increase In Terror Attacks Where Both ISIS As Al-Qaeda Continue To Present Threats

What will happen to European populism in 2018?