Telecommunications

The following is a summary of the Cisco Systems, Inc. (CSCO) Q2 2024 Earnings Call Transcript: Financial Performance: In Q2, Cisco reported total revenue of $12.8 billion, down 6% YoY. Product revenue dropped 9% to $9.2 billion, while service revenue rose 4% to $3.6 billion. Non-GAAP net income was $3.5 billion, a 3% decrease. Non-GAAP earnings per share were $0.87, a 1% decrease. Annual recurring revenue rose 6% to $24.7 billion, with total software revenue remaining flat at $4.2 billion and software subscription revenue increasing 5%. The non-GAAP gross margin and operating margin were 66.7% and 33% respectively. Cisco ended Q2 with cash and investment balance of $25.7 billion, and returned $2.8 billion to shareholders through dividends and share buybacks. The revenue guidance for Q3 is between $12.1 billion and $12.3 billion, with non-GAAP earnings per share projected to be from $0.84 to $0.86. Business Progress: Cisco is making a […]

Cisco Systems (NASDAQ:CSCO) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/15/2024 7.82% Wells Fargo → $52 Initiates Coverage On → Equal-Weight 02/12/2024 14.04% UBS $54 → $55 Maintains Neutral 01/08/2024 14.04% Melius Research → $55 Downgrades Buy → Hold 11/17/2023 3.67% DZ Bank → $50 Downgrades Buy → Hold 11/16/2023 11.96% Oppenheimer $58 → $54 Maintains Outperform 11/16/2023 11.96% UBS $55 → $54 Maintains Neutral 11/16/2023 3.67% Piper Sandler $57 → $50 Maintains Neutral 11/16/2023 5.74% Rosenblatt $59 → $51 Maintains Neutral 10/30/2023 — Raymond James Downgrades Outperform → Market Perform 09/22/2023 57.58% Tigress Financial $73 → $76 Maintains Buy 09/13/2023 24.4% B of A Securities $56 → $60 Maintains Neutral 08/21/2023 20.26% Deutsche Bank $54 → $58 Maintains Hold 08/17/2023 30.62% Evercore ISI Group $60 → $63 Maintains Outperform 08/17/2023 9.89% Piper Sandler $51 → $53 Maintains Neutral 08/17/2023 23.37%

Cisco Systems is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. Cisco Systems posted solid results for its second quarter, but the company provided guidance for the next two quarters that fell short of analysts’ estimates. The company also said it plans to reduce its workforce by about 5% as part of a restructuring plan “in order to realign the organization and enable further investment in key priority.” The company said the plan would result in about $800 million in charges for severance and other costs. Dow Jones & Co. owns Factiva.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our 12-month target price at $55, 14.3x our FY 25 (Jul.) EPS estimate, in line with its three-year forward average P/E, reflecting our growth concerns. We lower our FY 24 EPS estimate by $0.16 to $3.72 and trim FY 25’s by $0.22 to $3.84. Cisco Systems, Inc. (NASDAQ: CSCO) reported Jan-Q operating EPS of $0.87 vs. $0.88, $0.03 above the consensus. Jan-Q revenue fell 6%, driven by a 12% decline in the Networking segment, due to weak demand across switching, wireless, and routed optical networking, partially offset by 3% growth in Security, driven by its Zero Trust offering and a 3% increase in Collaboration, driven by growth in devices and calling. CSCO announced it would cut its workforce by 5%, or roughly 4.2K employees, in