FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
93,854,763Confirmed
2,009,343Deaths
67,029,564Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
Dow Jones Industrial Average and Cisco

The major U.S. stock indexes finished mixed on Thursday with the NASDAQ Composite posting the lone gain. The S&P 500 Index briefly traded above its record closing high level for a second session earlier in the session, but sellers regained control into the close. The Dow traded higher early but eventually fell in the wake of a disappointing forecast from Cisco Systems, Inc. A sharp rise in Apple, Inc. provided the primary support for the NASDAQ.

In the cash market on Thursday, the benchmark S&P 500 Index settled at 3373.43, down $6.92 or -0.23%. The blue chip Dow Jones industrial Average finished at 27896.72, down 80.12 or -0.32% and the technology-driven NASDAQ Composite closed at 11042.50, up 30.26 or +0.32%.

Cisco’s First-Quarter Forecast Disappoints Shares Fall

Cisco Systems, Inc. on Wednesday forecast first-quarter revenue and profit below Wall Street estimates and laid out a restructuring plan, as the coronavirus crisis forced its clients to hold back spending, Reuters reported. Shares of the top network equipment maker fell nearly 5% ahead of the opening on Thursday.

Advertisement

Cisco Lays Out Restructuring Plan

The restructuring, which includes a voluntary early retirement program and layoffs, will begin this quarter, the company said, adding that it expected to recognize a related one-time charge of about $900 million.

On a conference call with investors, Chief Executive Chuck Robbins said Cisco also plans to reduce its expenses by $1 billion on an annualized basis “over the next few quarters.”

Cisco Revenue Expected to Drop

Cisco expects current-quarter revenue to drop between 9% and 11% from last year, implying a range of between $11.71 billion and $11.97 billion, while analysts had expected $12.25 billion.

It also forecast adjusted earnings of 69 cents to 71 cents per share, below estimates of 76 cents, according to Refinitiv IBES data.

For the fiscal fourth quarter ended July 25, revenue fell about 9% to $12.15 billion (9.31 billion pounds), but beat estimates of $12.08 billion, as more people working from home boosted demand for its web security and teleconferencing tools.

Excluding items, Cisco earned 80 cents per share in the quarter, beating estimates of 74 cents.

Cisco CFO to Retire

The company also announced that Chief Financial Officer Kelly Kramer will retire from Cisco, but will remain with the company until a successor is found.

Kramer told Reuters that Cisco will continue to acquire smaller companies to help boost revenue and that its $2.84 billion acquisition of Aracia Communications Inc. remains on track. The deal was slated to close before the end of Cisco’s fiscal 2020 last month, but the company said it is still awaiting approval from Chinese regulators.

“We still feel good ab out it. We’re responding to their requests as fast as we can to make sure there are no issues,” Kramer said. “We are focused on getting it done.”

For a look at all of today’s economic events, check out our economic calendar.
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US