Cisco Stock News

Cisco is a leading player in telecommunication industry. It is a well known and well reputed company and its shares are under discussion under different areas in stock market. Cisco has reported earnings of its last quarter which were above expectation, it has also increased it dividends. The company has reported revenues of $11.5 billion and earnings per share of $0.51, where estimates were $11.4 billion for revenues and $0.48 as earning per share. The dividend has been increased to 19 cents. Cisco expects revenues of $12-12.3 billion in fourth quarter which is higher than estimates which is &11.8 billion. Cisco is expecting its EPS at 51-52 cents whereas analysts forecast is 51 cents. The stock price was up by 7% at the end of the trading day.

Total product orders were up by 7% in US, both commercial and enterprise orders grew at 10% in the quarter. Orders from Europe were up by 4%. Cisco’s book-to bill-ratio, which defines how many orders were fulfilled as compare to received orders was above one for the last quarter. Microsoft has also reported an increase in sales of total numbers of PCs.

There was observed a decrease of 5 % in orders from service providers. But there were some signs of improvement: the decrease in orders in first and second quarter was 12% and 13% respectively. Overall product revenues which are almost 76% of the total revenues were down by 8% as compared to 11% in second quarter. Two of the major segments switching and routing are also struggling and have shown a decline of 6% and 10%. In seconds quarter the decline was 12% and 11% in sales respectively. Although he revenues of both these segments declines but the Nexus 900 has shown some improvement. It has grown to 175 as compared to 20 in last quarter. This quarter has shown an upward trend in router order growth as compared to negative trend in last two quarters.

Technology industry is overall under pressure and there is an overall declining trend in the industry. Trends are changing and consumer preferences are changing. More people are moving towards mobiles from personal computers, the demand for tablets and smart phones has shown a significant increase and that is an issue for old technology providers. There is a shift being observed in both hardware and software. This is hurting Cisco’s business and demand for products has gone down but Cisco is also taking steps to respond to these changes and is introducing new products and services. It is believed that SDN will be a continuous threat for the company. It is being observed that cloud providers and enterprises are looking for other alternatives. Cisco is a very good company and responds to changes in the market and it is expected that it will do so in future as well. Although, Cisco is currently under pressure but its new ventures will pay off very soon and it will retain its market position.