Tech Winners & Losers: Cisco
Tech stocks were modestly higher Wednesday, as networking giant Cisco (CSCO) posted significant gains following its fourth-quarter earnings report.
Cisco was up $1.28, or 5.6%, to $23.93 after the company beat Street expectations for the fourth quarter. The company posted profit of $2 billion, or 33 cents a share vs. $1.9 billion, or 31 cents a share, the year before. Excluding one-time items, it earned 40 cents a share, topping consensus estimates by a penny. Revenue rose 10% to $10.4 billion and was slightly above Wall Street's estimate of $10.3 billion. For the first quarter, Cisco expects revenue to grow 8%, with an 8.5% increase in the fiscal second quarter. After that, revenue growth should accelerate back to the 12% to 17% range, said Cisco.
On Semiconductor (ONNN) gained 62 cents, or 6.6%, to $10.05 after it reported strong results for the second quarter. Excluding charges, the company posted earnings of 23 cents a share on revenue of $562.7 million, compared with earnings of 21 cents a share on revenue of $381.20 million, a year ago. Analysts were looking for EPS of 19 cents on revenue of $552.45 million. For the third quarter, On guided revenue in the range of $570 million to $585 million, higher than consensus estimates of $567.9 million.
Shares of Sprint Nextel (S) were down 84 cents, or 9.8%, to $7.71 after it swung to a loss in the second quarter though it still beat Wall Street's expectations. Revenue during the quarter fell 11% to $9.06 billion and was lower than analysts' estimates of $9.17 billion. Sprint said it saw lower customer losses in the quarter but expects it to rise again in the third quarter.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV