After the Bell: Cisco Earnings on Tap
Can management's restructuring plan turn around the firm?
Can management's restructuring plan turn around the firm?
Cisco Systems (CSCO) reports quarterly earnings after the stock market closes Wednesday. Wall Street analysts, on average, expect the firm to post earnings of $0.37 a share, compared to $0.42 in the year-ago quarter.
During the earnings call, analysts will likely listen for management's recently announced restructuring plan in its bid to turn around the fortunes of the maker of networking products.
Recently, CEO John Chambers admitted the company had "lost its way" and outlined several organizational changes: The firm shut down the Flip video-camera business, announced it is focusing on its core networking businesses, and trimmed head count.
Morningstar Analyst Grady Burkett feels Cisco shares are currently cheap.
In a Stock Analyst Note written before the organization's restructuring plan, Burkett said: "Significant scale advantages, meaningful customer-switching costs, and a reputation as the go-to provider of enterprise-class networking equipment give Cisco a durable competitive advantage in its core markets of routing and switching."
Burkett also added that the company's pursuit of growth is distracting the management and that it must cut low-margin, noncore businesses.
Will the recent announcements be a step in the right direction?
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals
and individual investors. These products and services are usually sold through
license agreements or subscriptions. Our investment management business generates
asset-based fees, which are calculated as a percentage of assets under management.
We also sell both admissions and sponsorship packages for our investment conferences
and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.