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Cisco Responds to Near-Term Headwinds with Large Cost Cuts

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Image Shown: Cisco Systems Inc’s financial performance held up well, relatively speaking, during the initial stages of the pandemic. Image Source: Cisco Systems Inc – Fourth Quarter of Fiscal 2020 IR Earnings Presentation By Callum Turcan On August 12, Cisco Systems Inc (CSCO) reported fourth quarter fiscal 2020 earnings (period ended July 25, 2020) that beat consensus estimates on both the top- and bottom-lines. However, Cisco’s outlook for the current fiscal quarter was weaker than expected which weighed on shares of CSCO during normal trading hours on August 13. Cisco’s near-term performance is facing headwinds due to the ongoing coronavirus (‘COVID-19’) pandemic as many of its customers are delaying projects until after the storm has passed. With that in mind, … Read more

Cisco Systems Makes a (Potentially) Transformative Acquisition

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Image Shown: Over the past five years, shares of Cisco Systems have significantly outperformed the S&P 500 (SPY), before taking dividend considerations into account. When including dividend considerations, Cisco’s outperformance would likely grow even further given shares of CSCO carry a juicy yield. By Callum Turcan We include shares of the networking infrastructure giant Cisco Systems (CSCO) as a holding in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios. Its high quality cash flow profile, pristine balance sheet, and growing subscription-based revenue streams make Cisco quite appealing. As of this writing, shares of CSCO yield ~3.1% and our Dividend Cushion ratio sits at 2.7, earning the firm a “GOOD” Dividend Safety rating. Should that Dividend Cushion ratio climb … Read more