{"id":175245,"date":"2021-02-11T00:33:00","date_gmt":"2021-02-10T21:33:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cisco-shares-pressured-as-strength-of-outlook-debated-given-quarters-extra-week\/"},"modified":"2021-02-11T00:33:00","modified_gmt":"2021-02-10T21:33:00","slug":"cisco-shares-pressured-as-strength-of-outlook-debated-given-quarters-extra-week","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cisco-shares-pressured-as-strength-of-outlook-debated-given-quarters-extra-week\/","title":{"rendered":"#\n  Cisco shares pressured as strength of outlook debated given quarter\u2019s extra week"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4faba5eadf9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4faba5eadf9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/cisco-shares-pressured-as-strength-of-outlook-debated-given-quarters-extra-week\/#Ciscos_better-than-expected_earnings_fail_to_cheer_analysts_and_investors\" >Cisco\u2019s better-than-expected earnings fail to cheer analysts and investors<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/cisco-shares-pressured-as-strength-of-outlook-debated-given-quarters-extra-week\/#Wallace_Witkowski\" >Wallace Witkowski<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Cisco shares pressured as strength of outlook debated given quarter\u2019s extra week<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Ciscos_better-than-expected_earnings_fail_to_cheer_analysts_and_investors\"><\/span>\n  Cisco\u2019s better-than-expected earnings fail to cheer analysts and investors<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000161854\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Cisco Systems Inc. shares fell Wednesday as investors debated how much the company\u2019s outlook reflected industry-wide component shortages and challenges posed by millions still working from home as the COVID-19 pandemic <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roaches a one-year milestone.<\/p>\n<p> Late Tuesday, Cisco<br \/>\n        CSCO,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209509471\/composite\" class=\"negative\">-2.60%<\/bg-quote><br \/>\n       reported quarterly results that topped Wall Street expectations but issued an outlook that many considered to be weak considering the April-ending quarter has one more week than the year-ago quarter.<\/p>\n<div class=\"paywall\">\n       The maker of network equipment, videoconferencing tools and security software forecast a 3.5% to 5.5% year-over-year increase in revenue, or a range between $12.38 billion and $12.68 billion, for the April-ending quarter.<\/p>\n<p>\u201cInvestors aren\u2019t too thrilled right now,\u201d said Patrick Moorhead, principal analyst at Moor Insights &amp; Strategy. \u201cI attribute this to its recent run-up and \u2018selling on the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>\u2019 philosophy.\u201d Cisco shares had advanced 9% in February leading up to Tuesday\u2019s earnings report, and fell nearly 6% in Wednesday trading. <\/p>\n<p>Of the 26 analysts who cover Cisco, 12 have buy ratings on the stock, and 14 have hold ratings, according to FactSet. Of those, eight hiked their price targets, raising the average price target on the stock to $51.80 from a previous $49.76, according to FactSet data.<\/p>\n<p><strong>Read:<\/strong> Cisco faces uncertainties as many continue to work from home<\/p>\n<p>J.P. Morgan analyst Samik Chatterjee, who has a neutral rating and a $50 price target, said that limited chip supplies that are effecting the whole industry will moderate how well enterprise spending recovers. He also said he was \u201cmodestly disappointed.\u201d <\/p>\n<p>Chatterjee said if you factor out the extra week, Cisco\u2019s outlook \u201cimplies only a<br \/>seasonal increase in revenues, rather than above seasonal trends helped by the<br \/>recovery.\u201d <\/p>\n<p>Raymond James analyst Simon Leopold, who has an outperform rating and a $50 price target, also cited the extra week in the outlook as making it appear \u201cinadequate,\u201d and said it was likely weighing on the stock price. Leopold also cited chip supply constraints as a factor for weakness in the shares.<\/p>\n<p>\u201cDemand and orders are improving, but component shortages, the pandemic and exchange rates present challenges,\u201d Leopold said.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Citi Research analyst Jim Suva, who has a neutral rating and raised his price target to $50 from $45, said Cisco\u2019s results and call \u201cwas the most positive we\u2019ve heard in a year.\u201d<\/p>\n<p>\u201cSo why do we have a neutral rating?\u201d Suva asked. \u201cAfter adjusting the outlook for an extra week, the outlook is in line and we are not sure what the new return to work life will be like and will enterprises indeed upgrade or are current solutions sufficient,\u201d he said.<\/p>\n<p>UBS analyst David Vogt, who has a neutral rating and raised his price target to $45 from $41, said investors are likely to take a wait-and-see approach when it comes to Cisco, given the company\u2019s Catalyst 9000 switches which require a subscription.<\/p>\n<p>\u201cWhile near-term strength in Cat9K (double digit growth) and Webscale (<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>le digit growth) was solid, these two offerings likely masked mid-single digit revenue declines across the rest of Cisco\u2019s portfolio based on our analysis,\u201d Vogt said.<\/p>\n<p>\u201cAs such, we believe Cat9K subscription renewal cadence in fiscal 2H is a critical metric to monitor as it sets the stage for a meaningfully larger wave of renewals hitting in FY22,\u201d Vogt said.<\/p>\n<p>Over the past 12 months, Cisco shares are down 5%, versus a 7% advance by the Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"positive\">+0.20%<\/bg-quote><span>,<\/span><br \/>\n       of which Cisco is a component, a 17% rise by the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.03%<\/bg-quote><span>,<\/span><br \/>\n       and a 45% gain by the tech-heavy Nasdaq Composite Index<br \/>\n        COMP,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598365\/realtime\" class=\"negative\">-0.25%<\/bg-quote><span>.<\/span><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Wallace Witkowski\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Wallace_Witkowski\"><\/span>Wallace Witkowski<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D2783E181F28%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Cisco shares pressured as strength of outlook debated given quarter\u2019s extra week &#8221; Cisco\u2019s better-than-expected earnings fail to cheer analysts and investors Cisco Systems Inc. shares fell Wednesday as investors debated how much the company\u2019s outlook reflected industry-wide component shortages and challenges posed by millions still working from home as the COVID-19 pandemic approaches&#8230;<\/p>\n","protected":false},"author":1,"featured_media":175246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-175245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/175245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=175245"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/175245\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/175246"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=175245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=175245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=175245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}