Cisco Earnings Preview: Stock Moving On The 'Value' Label

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Cisco Earnings Preview: Stock Moving On The 'Value' Label

seekingalpha2021-05-18

Summary Cisco's all-time-high was $82 in April 2000. Cisco's issues are still the same, but "value" stocks are getting a better bid today. The 6% free-cash-flow yield is compelling, but intrinsic ...

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CKSAW
·2021-05-20
It will hit 54+ after earnings today.
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Kikiooi
·2021-05-18
It is going stronger
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letsgo8
·2021-05-18
Reply pls
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- Freddyd:
  [OMG]
  2021-05-18
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- letsgo8:
  Reply plS
  2021-05-18
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mreddeham
·2021-05-18
Like n comment.
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- Huathk:
  K
  2021-05-18
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brianyen
·2021-05-18
Nice
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- Yt64:
  nice la
  2021-05-18
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nanalim
·2021-05-18
Like and comment please. Thanks
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- Huathk:
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  2021-05-18
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AhShui
·2021-05-18
Nice
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13Wonders
·2021-05-18
Like and commment
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- Huathk:
  K
  2021-05-18
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- BraveAAC:
  Comment me back too [真香] [真香] [真香]
  2021-05-18
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dandan_4896
·2021-05-18
my reservist got deferred le
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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCisco Earnings Preview: Stock Moving On The 'Value' Label\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic ...</p>\n\n<a href=\"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CSCO","symbol_name":"思科","start_time":0,"source_url":"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label","article_id":"1109268627","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1109268627","pubTimestamp":1621324905,"columns":[],"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\"","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"CSCO":"思科"},"translate_title":"思科业绩预览：股票在“价值”标签上移动","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CSCO":0.9},"content_text":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.\nThe company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.\nCisco will face easier comps the next few quarters.\n\nPhoto by raisbeckfoto/iStock Unreleased via Getty Images\nWhen Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.\nCurrent consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.\nCisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.\nThe numbers:\nSource: cons ests IBES data by Refinitiv as of 5/17/21\n\n\n\n\n\nThe story (in a nutshell):\nThe 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.\nThe CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.\nHere is a quick look at Cisco by segment:\nData source: Cisco earnings reports\nReaders should note the \"Security\" line in both the middle and last set of rows.\nSecurity as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.\nNote too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.\nPerformance:\n21-year performance of Cisco vs. S&P 500:\nSource: YCharts software\n6-year performance of Cisco vs. S&P 500:\nSource: YCharts software\nThe last 6 years show some outperformance for Cisco relative to the S&P 500, which I was surprised to see after running the chart.\nCisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.\nSummary/Conclusion:\nCisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.\nClients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.\nPeople often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.\nAfter tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.\nThat moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.\nThe irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.\nWe just have to watch that underlying business.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":197825231,"gmtCreate":1621442296723,"gmtModify":1704357768458,"author":{"id":"3554905551767817","authorId":"3554905551767817","name":"CKSAW","avatar":"https://static.tigerbbs.com/e917b967839e5a6048d105b47d2a6804","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3554905551767817","idStr":"3554905551767817"},"htmlText":"It will hit 54+ after earnings today.","listText":"It will hit 54+ after earnings today.","text":"It will hit 54+ after earnings today.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/197825231","repostId":1109268627,"repostType":2,"repost":{"id":"1109268627","kind":"news","pubTimestamp":1621324905,"share":"https://ttm.financial/m/news/1109268627?lang=&edition=fundamental","pubTime":"2021-05-18 16:01","market":"us","language":"en","title":"Cisco Earnings Preview: Stock Moving On The 'Value' Label","url":"https://stock-news.laohu8.com/highlight/detail?id=1109268627","media":"seekingalpha","summary":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\"","content":"<p><b>Summary</b></p>\n<ul>\n <li>Cisco's all-time-high was $82 in April 2000.</li>\n <li>Cisco's issues are still the same, but \"value\" stocks are getting a better bid today.</li>\n <li>The 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.</li>\n <li>The company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.</li>\n <li>Cisco will face easier comps the next few quarters.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aab11b905c127f0a275b5b6a47fc9f0b\" tg-width=\"768\" tg-height=\"511\"><span>Photo by raisbeckfoto/iStock Unreleased via Getty Images</span></p>\n<p>When Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.</p>\n<p>Current consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.</p>\n<p>Cisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.</p>\n<p><b>The numbers:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7c371a6667991c668105697a290aa0d9\" tg-width=\"457\" tg-height=\"645\"><span>Source: cons ests IBES data by Refinitiv as of 5/17/21</span></p>\n<table>\n <tbody>\n  <tr></tr>\n </tbody>\n</table>\n<p><b>The story (in a nutshell):</b></p>\n<p>The 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.</p>\n<p>The CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.</p>\n<p><b>Here is a quick look at Cisco by segment:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/61431ed6047209716d2a0a5754406721\" tg-width=\"640\" tg-height=\"159\"><span>Data source: Cisco earnings reports</span></p>\n<p>Readers should note the \"Security\" line in both the middle and last set of rows.</p>\n<p>Security as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.</p>\n<p>Note too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.</p>\n<p><b>Performance:</b></p>\n<p>21-year performance of Cisco vs. S&amp;P 500:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aec307711b74baa1318dbcc58877620d\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p><b>6-year performance of Cisco vs. S&amp;P 500:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e0e3557fa7420757993c89dd4aa96f6c\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p>The last 6 years show some outperformance for Cisco relative to the S&amp;P 500, which I was surprised to see after running the chart.</p>\n<p>Cisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.</p>\n<p><b>Summary/Conclusion:</b></p>\n<p>Cisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.</p>\n<p>Clients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.</p>\n<p>People often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.</p>\n<p>After tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.</p>\n<p>That moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.</p>\n<p>The irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.</p>\n<p>We just have to watch that underlying business.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Cisco Earnings Preview: Stock Moving On The 'Value' Label</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCisco Earnings Preview: Stock Moving On The 'Value' Label\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic ...</p>\n\n<a href=\"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"CSCO":"思科"},"source_url":"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1109268627","content_text":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.\nThe company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.\nCisco will face easier comps the next few quarters.\n\nPhoto by raisbeckfoto/iStock Unreleased via Getty Images\nWhen Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.\nCurrent consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.\nCisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.\nThe numbers:\nSource: cons ests IBES data by Refinitiv as of 5/17/21\n\n\n\n\n\nThe story (in a nutshell):\nThe 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.\nThe CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.\nHere is a quick look at Cisco by segment:\nData source: Cisco earnings reports\nReaders should note the \"Security\" line in both the middle and last set of rows.\nSecurity as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.\nNote too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.\nPerformance:\n21-year performance of Cisco vs. S&P 500:\nSource: YCharts software\n6-year performance of Cisco vs. S&P 500:\nSource: YCharts software\nThe last 6 years show some outperformance for Cisco relative to the S&P 500, which I was surprised to see after running the chart.\nCisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.\nSummary/Conclusion:\nCisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.\nClients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.\nPeople often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.\nAfter tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.\nThat moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.\nThe irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.\nWe just have to watch that underlying business.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":194046438,"gmtCreate":1621329412824,"gmtModify":1704355869025,"author":{"id":"3574639507377836","authorId":"3574639507377836","name":"Kikiooi","avatar":"https://static.tigerbbs.com/81135f833a61d8d0899dff1c77b07e72","vip":1,"crmLevel":5,"crmLevelSwitch":0,"authorIdStr":"3574639507377836","idStr":"3574639507377836"},"htmlText":"It is going stronger&nbsp;","listText":"It is going stronger&nbsp;","text":"It is going stronger","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/194046438","repostId":1109268627,"repostType":4,"repost":{"id":"1109268627","kind":"news","pubTimestamp":1621324905,"share":"https://ttm.financial/m/news/1109268627?lang=&edition=fundamental","pubTime":"2021-05-18 16:01","market":"us","language":"en","title":"Cisco Earnings Preview: Stock Moving On The 'Value' Label","url":"https://stock-news.laohu8.com/highlight/detail?id=1109268627","media":"seekingalpha","summary":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\"","content":"<p><b>Summary</b></p>\n<ul>\n <li>Cisco's all-time-high was $82 in April 2000.</li>\n <li>Cisco's issues are still the same, but \"value\" stocks are getting a better bid today.</li>\n <li>The 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.</li>\n <li>The company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.</li>\n <li>Cisco will face easier comps the next few quarters.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aab11b905c127f0a275b5b6a47fc9f0b\" tg-width=\"768\" tg-height=\"511\"><span>Photo by raisbeckfoto/iStock Unreleased via Getty Images</span></p>\n<p>When Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.</p>\n<p>Current consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.</p>\n<p>Cisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.</p>\n<p><b>The numbers:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7c371a6667991c668105697a290aa0d9\" tg-width=\"457\" tg-height=\"645\"><span>Source: cons ests IBES data by Refinitiv as of 5/17/21</span></p>\n<table>\n <tbody>\n  <tr></tr>\n </tbody>\n</table>\n<p><b>The story (in a nutshell):</b></p>\n<p>The 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.</p>\n<p>The CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.</p>\n<p><b>Here is a quick look at Cisco by segment:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/61431ed6047209716d2a0a5754406721\" tg-width=\"640\" tg-height=\"159\"><span>Data source: Cisco earnings reports</span></p>\n<p>Readers should note the \"Security\" line in both the middle and last set of rows.</p>\n<p>Security as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.</p>\n<p>Note too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.</p>\n<p><b>Performance:</b></p>\n<p>21-year performance of Cisco vs. S&amp;P 500:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aec307711b74baa1318dbcc58877620d\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p><b>6-year performance of Cisco vs. S&amp;P 500:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e0e3557fa7420757993c89dd4aa96f6c\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p>The last 6 years show some outperformance for Cisco relative to the S&amp;P 500, which I was surprised to see after running the chart.</p>\n<p>Cisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.</p>\n<p><b>Summary/Conclusion:</b></p>\n<p>Cisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.</p>\n<p>Clients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.</p>\n<p>People often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.</p>\n<p>After tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.</p>\n<p>That moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.</p>\n<p>The irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.</p>\n<p>We just have to watch that underlying business.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Cisco Earnings Preview: Stock Moving On The 'Value' Label</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCisco Earnings Preview: Stock Moving On The 'Value' Label\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic ...</p>\n\n<a href=\"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"CSCO":"思科"},"source_url":"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1109268627","content_text":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.\nThe company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.\nCisco will face easier comps the next few quarters.\n\nPhoto by raisbeckfoto/iStock Unreleased via Getty Images\nWhen Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.\nCurrent consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.\nCisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.\nThe numbers:\nSource: cons ests IBES data by Refinitiv as of 5/17/21\n\n\n\n\n\nThe story (in a nutshell):\nThe 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.\nThe CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.\nHere is a quick look at Cisco by segment:\nData source: Cisco earnings reports\nReaders should note the \"Security\" line in both the middle and last set of rows.\nSecurity as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.\nNote too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.\nPerformance:\n21-year performance of Cisco vs. S&P 500:\nSource: YCharts software\n6-year performance of Cisco vs. S&P 500:\nSource: YCharts software\nThe last 6 years show some outperformance for Cisco relative to the S&P 500, which I was surprised to see after running the chart.\nCisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.\nSummary/Conclusion:\nCisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.\nClients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.\nPeople often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.\nAfter tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.\nThat moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.\nThe irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.\nWe just have to watch that underlying business.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":194022961,"gmtCreate":1621327659653,"gmtModify":1704355843664,"author":{"id":"3575378189904678","authorId":"3575378189904678","name":"letsgo8","avatar":"https://static.tigerbbs.com/cfa8cd71bc61e78a08bb731667341ac4","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3575378189904678","idStr":"3575378189904678"},"htmlText":"Reply pls","listText":"Reply pls","text":"Reply pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/194022961","repostId":1109268627,"repostType":4,"repost":{"id":"1109268627","kind":"news","pubTimestamp":1621324905,"share":"https://ttm.financial/m/news/1109268627?lang=&edition=fundamental","pubTime":"2021-05-18 16:01","market":"us","language":"en","title":"Cisco Earnings Preview: Stock Moving On The 'Value' Label","url":"https://stock-news.laohu8.com/highlight/detail?id=1109268627","media":"seekingalpha","summary":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\"","content":"<p><b>Summary</b></p>\n<ul>\n <li>Cisco's all-time-high was $82 in April 2000.</li>\n <li>Cisco's issues are still the same, but \"value\" stocks are getting a better bid today.</li>\n <li>The 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.</li>\n <li>The company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.</li>\n <li>Cisco will face easier comps the next few quarters.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aab11b905c127f0a275b5b6a47fc9f0b\" tg-width=\"768\" tg-height=\"511\"><span>Photo by raisbeckfoto/iStock Unreleased via Getty Images</span></p>\n<p>When Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.</p>\n<p>Current consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.</p>\n<p>Cisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.</p>\n<p><b>The numbers:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7c371a6667991c668105697a290aa0d9\" tg-width=\"457\" tg-height=\"645\"><span>Source: cons ests IBES data by Refinitiv as of 5/17/21</span></p>\n<table>\n <tbody>\n  <tr></tr>\n </tbody>\n</table>\n<p><b>The story (in a nutshell):</b></p>\n<p>The 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.</p>\n<p>The CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.</p>\n<p><b>Here is a quick look at Cisco by segment:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/61431ed6047209716d2a0a5754406721\" tg-width=\"640\" tg-height=\"159\"><span>Data source: Cisco earnings reports</span></p>\n<p>Readers should note the \"Security\" line in both the middle and last set of rows.</p>\n<p>Security as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.</p>\n<p>Note too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.</p>\n<p><b>Performance:</b></p>\n<p>21-year performance of Cisco vs. S&amp;P 500:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aec307711b74baa1318dbcc58877620d\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p><b>6-year performance of Cisco vs. S&amp;P 500:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e0e3557fa7420757993c89dd4aa96f6c\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p>The last 6 years show some outperformance for Cisco relative to the S&amp;P 500, which I was surprised to see after running the chart.</p>\n<p>Cisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.</p>\n<p><b>Summary/Conclusion:</b></p>\n<p>Cisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.</p>\n<p>Clients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.</p>\n<p>People often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.</p>\n<p>After tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.</p>\n<p>That moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.</p>\n<p>The irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.</p>\n<p>We just have to watch that underlying business.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Cisco Earnings Preview: Stock Moving On The 'Value' Label</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCisco Earnings Preview: Stock Moving On The 'Value' Label\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic ...</p>\n\n<a href=\"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"CSCO":"思科"},"source_url":"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1109268627","content_text":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.\nThe company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.\nCisco will face easier comps the next few quarters.\n\nPhoto by raisbeckfoto/iStock Unreleased via Getty Images\nWhen Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.\nCurrent consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.\nCisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.\nThe numbers:\nSource: cons ests IBES data by Refinitiv as of 5/17/21\n\n\n\n\n\nThe story (in a nutshell):\nThe 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.\nThe CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.\nHere is a quick look at Cisco by segment:\nData source: Cisco earnings reports\nReaders should note the \"Security\" line in both the middle and last set of rows.\nSecurity as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.\nNote too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.\nPerformance:\n21-year performance of Cisco vs. S&P 500:\nSource: YCharts software\n6-year performance of Cisco vs. S&P 500:\nSource: YCharts software\nThe last 6 years show some outperformance for Cisco relative to the S&P 500, which I was surprised to see after running the chart.\nCisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.\nSummary/Conclusion:\nCisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.\nClients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.\nPeople often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.\nAfter tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.\nThat moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.\nThe irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.\nWe just have to watch that underlying business.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4365531,"gmtCreate":1621327921456,"gmtModify":1680789469448,"authorId":3574854386909318,"author":{"id":3574854386909318,"idStr":"3574854386909318","authorId":3574854386909318,"name":"Freddyd","avatar":"https://static.tigerbbs.com/7967e4125926fdf32d9965f6fe32519d","vip":1,"crmLevel":7,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":194022961,"type":1,"supId":0,"prevId":0,"content":" [OMG]","text":" [OMG]","html":" [OMG]"},{"id":4365490,"gmtCreate":1621327667463,"gmtModify":1680789467724,"authorId":3575378189904678,"author":{"id":3575378189904678,"idStr":"3575378189904678","authorId":3575378189904678,"name":"letsgo8","avatar":"https://static.tigerbbs.com/cfa8cd71bc61e78a08bb731667341ac4","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":194022961,"type":1,"supId":0,"prevId":0,"content":"Reply plS","text":"Reply plS","html":"Reply plS"}],"langContent":"EN"},{"id":194064875,"gmtCreate":1621327158397,"gmtModify":1704355832315,"author":{"id":"3581558525974959","authorId":"3581558525974959","name":"mreddeham","avatar":"https://static.tigerbbs.com/a6fa672c579549dff0b2d3edced5788b","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3581558525974959","idStr":"3581558525974959"},"htmlText":"Like n comment.","listText":"Like n comment.","text":"Like n comment.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/194064875","repostId":1109268627,"repostType":4,"repost":{"id":"1109268627","kind":"news","pubTimestamp":1621324905,"share":"https://ttm.financial/m/news/1109268627?lang=&edition=fundamental","pubTime":"2021-05-18 16:01","market":"us","language":"en","title":"Cisco Earnings Preview: Stock Moving On The 'Value' Label","url":"https://stock-news.laohu8.com/highlight/detail?id=1109268627","media":"seekingalpha","summary":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\"","content":"<p><b>Summary</b></p>\n<ul>\n <li>Cisco's all-time-high was $82 in April 2000.</li>\n <li>Cisco's issues are still the same, but \"value\" stocks are getting a better bid today.</li>\n <li>The 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.</li>\n <li>The company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.</li>\n <li>Cisco will face easier comps the next few quarters.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aab11b905c127f0a275b5b6a47fc9f0b\" tg-width=\"768\" tg-height=\"511\"><span>Photo by raisbeckfoto/iStock Unreleased via Getty Images</span></p>\n<p>When Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.</p>\n<p>Current consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.</p>\n<p>Cisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.</p>\n<p><b>The numbers:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7c371a6667991c668105697a290aa0d9\" tg-width=\"457\" tg-height=\"645\"><span>Source: cons ests IBES data by Refinitiv as of 5/17/21</span></p>\n<table>\n <tbody>\n  <tr></tr>\n </tbody>\n</table>\n<p><b>The story (in a nutshell):</b></p>\n<p>The 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.</p>\n<p>The CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.</p>\n<p><b>Here is a quick look at Cisco by segment:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/61431ed6047209716d2a0a5754406721\" tg-width=\"640\" tg-height=\"159\"><span>Data source: Cisco earnings reports</span></p>\n<p>Readers should note the \"Security\" line in both the middle and last set of rows.</p>\n<p>Security as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.</p>\n<p>Note too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.</p>\n<p><b>Performance:</b></p>\n<p>21-year performance of Cisco vs. S&amp;P 500:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aec307711b74baa1318dbcc58877620d\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p><b>6-year performance of Cisco vs. S&amp;P 500:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e0e3557fa7420757993c89dd4aa96f6c\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p>The last 6 years show some outperformance for Cisco relative to the S&amp;P 500, which I was surprised to see after running the chart.</p>\n<p>Cisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.</p>\n<p><b>Summary/Conclusion:</b></p>\n<p>Cisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.</p>\n<p>Clients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.</p>\n<p>People often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.</p>\n<p>After tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.</p>\n<p>That moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.</p>\n<p>The irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.</p>\n<p>We just have to watch that underlying business.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Cisco Earnings Preview: Stock Moving On The 'Value' Label</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCisco Earnings Preview: Stock Moving On The 'Value' Label\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic ...</p>\n\n<a href=\"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"CSCO":"思科"},"source_url":"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1109268627","content_text":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.\nThe company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.\nCisco will face easier comps the next few quarters.\n\nPhoto by raisbeckfoto/iStock Unreleased via Getty Images\nWhen Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.\nCurrent consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.\nCisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.\nThe numbers:\nSource: cons ests IBES data by Refinitiv as of 5/17/21\n\n\n\n\n\nThe story (in a nutshell):\nThe 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.\nThe CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.\nHere is a quick look at Cisco by segment:\nData source: Cisco earnings reports\nReaders should note the \"Security\" line in both the middle and last set of rows.\nSecurity as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.\nNote too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.\nPerformance:\n21-year performance of Cisco vs. S&P 500:\nSource: YCharts software\n6-year performance of Cisco vs. S&P 500:\nSource: YCharts software\nThe last 6 years show some outperformance for Cisco relative to the S&P 500, which I was surprised to see after running the chart.\nCisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.\nSummary/Conclusion:\nCisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.\nClients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.\nPeople often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.\nAfter tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.\nThat moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.\nThe irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.\nWe just have to watch that underlying business.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4365553,"gmtCreate":1621328022138,"gmtModify":1680789468314,"authorId":3573472992263411,"author":{"id":3573472992263411,"idStr":"3573472992263411","authorId":3573472992263411,"name":"Huathk","avatar":"https://static.tigerbbs.com/43c7168c646d9ea6805194ed0003f1cc","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":194064875,"type":1,"supId":0,"prevId":0,"content":"K","text":"K","html":"K"}],"langContent":"EN"},{"id":194069687,"gmtCreate":1621326566649,"gmtModify":1704355822876,"author":{"id":"3584231158405889","authorId":"3584231158405889","name":"brianyen","avatar":"https://static.tigerbbs.com/5b75a71e0efe1b94541f4d141fcfe37a","vip":1,"crmLevel":5,"crmLevelSwitch":0,"authorIdStr":"3584231158405889","idStr":"3584231158405889"},"htmlText":"Nice&nbsp;","listText":"Nice&nbsp;","text":"Nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/194069687","repostId":1109268627,"repostType":4,"repost":{"id":"1109268627","kind":"news","pubTimestamp":1621324905,"share":"https://ttm.financial/m/news/1109268627?lang=&edition=fundamental","pubTime":"2021-05-18 16:01","market":"us","language":"en","title":"Cisco Earnings Preview: Stock Moving On The 'Value' Label","url":"https://stock-news.laohu8.com/highlight/detail?id=1109268627","media":"seekingalpha","summary":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\"","content":"<p><b>Summary</b></p>\n<ul>\n <li>Cisco's all-time-high was $82 in April 2000.</li>\n <li>Cisco's issues are still the same, but \"value\" stocks are getting a better bid today.</li>\n <li>The 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.</li>\n <li>The company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.</li>\n <li>Cisco will face easier comps the next few quarters.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aab11b905c127f0a275b5b6a47fc9f0b\" tg-width=\"768\" tg-height=\"511\"><span>Photo by raisbeckfoto/iStock Unreleased via Getty Images</span></p>\n<p>When Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.</p>\n<p>Current consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.</p>\n<p>Cisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.</p>\n<p><b>The numbers:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7c371a6667991c668105697a290aa0d9\" tg-width=\"457\" tg-height=\"645\"><span>Source: cons ests IBES data by Refinitiv as of 5/17/21</span></p>\n<table>\n <tbody>\n  <tr></tr>\n </tbody>\n</table>\n<p><b>The story (in a nutshell):</b></p>\n<p>The 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.</p>\n<p>The CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.</p>\n<p><b>Here is a quick look at Cisco by segment:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/61431ed6047209716d2a0a5754406721\" tg-width=\"640\" tg-height=\"159\"><span>Data source: Cisco earnings reports</span></p>\n<p>Readers should note the \"Security\" line in both the middle and last set of rows.</p>\n<p>Security as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.</p>\n<p>Note too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.</p>\n<p><b>Performance:</b></p>\n<p>21-year performance of Cisco vs. S&amp;P 500:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aec307711b74baa1318dbcc58877620d\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p><b>6-year performance of Cisco vs. S&amp;P 500:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e0e3557fa7420757993c89dd4aa96f6c\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p>The last 6 years show some outperformance for Cisco relative to the S&amp;P 500, which I was surprised to see after running the chart.</p>\n<p>Cisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.</p>\n<p><b>Summary/Conclusion:</b></p>\n<p>Cisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.</p>\n<p>Clients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.</p>\n<p>People often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.</p>\n<p>After tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.</p>\n<p>That moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.</p>\n<p>The irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.</p>\n<p>We just have to watch that underlying business.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Cisco Earnings Preview: Stock Moving On The 'Value' Label</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCisco Earnings Preview: Stock Moving On The 'Value' Label\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic ...</p>\n\n<a href=\"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"CSCO":"思科"},"source_url":"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1109268627","content_text":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.\nThe company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.\nCisco will face easier comps the next few quarters.\n\nPhoto by raisbeckfoto/iStock Unreleased via Getty Images\nWhen Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.\nCurrent consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.\nCisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.\nThe numbers:\nSource: cons ests IBES data by Refinitiv as of 5/17/21\n\n\n\n\n\nThe story (in a nutshell):\nThe 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.\nThe CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.\nHere is a quick look at Cisco by segment:\nData source: Cisco earnings reports\nReaders should note the \"Security\" line in both the middle and last set of rows.\nSecurity as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.\nNote too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.\nPerformance:\n21-year performance of Cisco vs. S&P 500:\nSource: YCharts software\n6-year performance of Cisco vs. S&P 500:\nSource: YCharts software\nThe last 6 years show some outperformance for Cisco relative to the S&P 500, which I was surprised to see after running the chart.\nCisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.\nSummary/Conclusion:\nCisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.\nClients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.\nPeople often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.\nAfter tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.\nThat moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.\nThe irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.\nWe just have to watch that underlying business.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4365335,"gmtCreate":1621326587191,"gmtModify":1680789454350,"authorId":3584416898370318,"author":{"id":3584416898370318,"idStr":"3584416898370318","authorId":3584416898370318,"name":"Yt64","avatar":"https://static.tigerbbs.com/9824cc246c21cbb20e1583ad744abef8","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":194069687,"type":1,"supId":0,"prevId":0,"content":"nice <u>la</u>","text":"nice <u>la</u>","html":"nice <u>la</u>"}],"langContent":"EN"},{"id":194087362,"gmtCreate":1621326428956,"gmtModify":1704355819795,"author":{"id":"3582693378664366","authorId":"3582693378664366","name":"nanalim","avatar":"https://static.tigerbbs.com/7562c2cbacf07201be0244e47614590d","vip":1,"crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"3582693378664366","idStr":"3582693378664366"},"htmlText":"Like and comment please. Thanks&nbsp;","listText":"Like and comment please. Thanks&nbsp;","text":"Like and comment please. Thanks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/194087362","repostId":1109268627,"repostType":4,"repost":{"id":"1109268627","kind":"news","pubTimestamp":1621324905,"share":"https://ttm.financial/m/news/1109268627?lang=&edition=fundamental","pubTime":"2021-05-18 16:01","market":"us","language":"en","title":"Cisco Earnings Preview: Stock Moving On The 'Value' Label","url":"https://stock-news.laohu8.com/highlight/detail?id=1109268627","media":"seekingalpha","summary":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\"","content":"<p><b>Summary</b></p>\n<ul>\n <li>Cisco's all-time-high was $82 in April 2000.</li>\n <li>Cisco's issues are still the same, but \"value\" stocks are getting a better bid today.</li>\n <li>The 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.</li>\n <li>The company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.</li>\n <li>Cisco will face easier comps the next few quarters.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aab11b905c127f0a275b5b6a47fc9f0b\" tg-width=\"768\" tg-height=\"511\"><span>Photo by raisbeckfoto/iStock Unreleased via Getty Images</span></p>\n<p>When Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.</p>\n<p>Current consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.</p>\n<p>Cisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.</p>\n<p><b>The numbers:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7c371a6667991c668105697a290aa0d9\" tg-width=\"457\" tg-height=\"645\"><span>Source: cons ests IBES data by Refinitiv as of 5/17/21</span></p>\n<table>\n <tbody>\n  <tr></tr>\n </tbody>\n</table>\n<p><b>The story (in a nutshell):</b></p>\n<p>The 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.</p>\n<p>The CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.</p>\n<p><b>Here is a quick look at Cisco by segment:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/61431ed6047209716d2a0a5754406721\" tg-width=\"640\" tg-height=\"159\"><span>Data source: Cisco earnings reports</span></p>\n<p>Readers should note the \"Security\" line in both the middle and last set of rows.</p>\n<p>Security as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.</p>\n<p>Note too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.</p>\n<p><b>Performance:</b></p>\n<p>21-year performance of Cisco vs. S&amp;P 500:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aec307711b74baa1318dbcc58877620d\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p><b>6-year performance of Cisco vs. S&amp;P 500:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e0e3557fa7420757993c89dd4aa96f6c\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p>The last 6 years show some outperformance for Cisco relative to the S&amp;P 500, which I was surprised to see after running the chart.</p>\n<p>Cisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.</p>\n<p><b>Summary/Conclusion:</b></p>\n<p>Cisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.</p>\n<p>Clients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.</p>\n<p>People often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.</p>\n<p>After tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.</p>\n<p>That moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.</p>\n<p>The irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.</p>\n<p>We just have to watch that underlying business.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Cisco Earnings Preview: Stock Moving On The 'Value' Label</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCisco Earnings Preview: Stock Moving On The 'Value' Label\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic ...</p>\n\n<a href=\"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"CSCO":"思科"},"source_url":"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1109268627","content_text":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.\nThe company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.\nCisco will face easier comps the next few quarters.\n\nPhoto by raisbeckfoto/iStock Unreleased via Getty Images\nWhen Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.\nCurrent consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.\nCisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.\nThe numbers:\nSource: cons ests IBES data by Refinitiv as of 5/17/21\n\n\n\n\n\nThe story (in a nutshell):\nThe 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.\nThe CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.\nHere is a quick look at Cisco by segment:\nData source: Cisco earnings reports\nReaders should note the \"Security\" line in both the middle and last set of rows.\nSecurity as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.\nNote too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.\nPerformance:\n21-year performance of Cisco vs. S&P 500:\nSource: YCharts software\n6-year performance of Cisco vs. S&P 500:\nSource: YCharts software\nThe last 6 years show some outperformance for Cisco relative to the S&P 500, which I was surprised to see after running the chart.\nCisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.\nSummary/Conclusion:\nCisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.\nClients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.\nPeople often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.\nAfter tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.\nThat moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.\nThe irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.\nWe just have to watch that underlying business.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4365555,"gmtCreate":1621328031767,"gmtModify":1680789470145,"authorId":3573472992263411,"author":{"id":3573472992263411,"idStr":"3573472992263411","authorId":3573472992263411,"name":"Huathk","avatar":"https://static.tigerbbs.com/43c7168c646d9ea6805194ed0003f1cc","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":194087362,"type":1,"supId":0,"prevId":0,"content":"K","text":"K","html":"K"}],"langContent":"EN"},{"id":194014990,"gmtCreate":1621325735910,"gmtModify":1704355805380,"author":{"id":"3572250480206178","authorId":"3572250480206178","name":"AhShui","avatar":"https://static.tigerbbs.com/e17900eb752bb98a2a90b76a16717e3c","vip":1,"crmLevel":3,"crmLevelSwitch":0,"authorIdStr":"3572250480206178","idStr":"3572250480206178"},"htmlText":"Nice","listText":"Nice","text":"Nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/194014990","repostId":1109268627,"repostType":4,"repost":{"id":"1109268627","kind":"news","pubTimestamp":1621324905,"share":"https://ttm.financial/m/news/1109268627?lang=&edition=fundamental","pubTime":"2021-05-18 16:01","market":"us","language":"en","title":"Cisco Earnings Preview: Stock Moving On The 'Value' Label","url":"https://stock-news.laohu8.com/highlight/detail?id=1109268627","media":"seekingalpha","summary":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\"","content":"<p><b>Summary</b></p>\n<ul>\n <li>Cisco's all-time-high was $82 in April 2000.</li>\n <li>Cisco's issues are still the same, but \"value\" stocks are getting a better bid today.</li>\n <li>The 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.</li>\n <li>The company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.</li>\n <li>Cisco will face easier comps the next few quarters.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aab11b905c127f0a275b5b6a47fc9f0b\" tg-width=\"768\" tg-height=\"511\"><span>Photo by raisbeckfoto/iStock Unreleased via Getty Images</span></p>\n<p>When Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.</p>\n<p>Current consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.</p>\n<p>Cisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.</p>\n<p><b>The numbers:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7c371a6667991c668105697a290aa0d9\" tg-width=\"457\" tg-height=\"645\"><span>Source: cons ests IBES data by Refinitiv as of 5/17/21</span></p>\n<table>\n <tbody>\n  <tr></tr>\n </tbody>\n</table>\n<p><b>The story (in a nutshell):</b></p>\n<p>The 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.</p>\n<p>The CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.</p>\n<p><b>Here is a quick look at Cisco by segment:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/61431ed6047209716d2a0a5754406721\" tg-width=\"640\" tg-height=\"159\"><span>Data source: Cisco earnings reports</span></p>\n<p>Readers should note the \"Security\" line in both the middle and last set of rows.</p>\n<p>Security as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.</p>\n<p>Note too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.</p>\n<p><b>Performance:</b></p>\n<p>21-year performance of Cisco vs. S&amp;P 500:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aec307711b74baa1318dbcc58877620d\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p><b>6-year performance of Cisco vs. S&amp;P 500:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e0e3557fa7420757993c89dd4aa96f6c\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p>The last 6 years show some outperformance for Cisco relative to the S&amp;P 500, which I was surprised to see after running the chart.</p>\n<p>Cisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.</p>\n<p><b>Summary/Conclusion:</b></p>\n<p>Cisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.</p>\n<p>Clients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.</p>\n<p>People often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.</p>\n<p>After tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.</p>\n<p>That moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.</p>\n<p>The irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.</p>\n<p>We just have to watch that underlying business.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Cisco Earnings Preview: Stock Moving On The 'Value' Label</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCisco Earnings Preview: Stock Moving On The 'Value' Label\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic ...</p>\n\n<a href=\"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"CSCO":"思科"},"source_url":"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1109268627","content_text":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.\nThe company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.\nCisco will face easier comps the next few quarters.\n\nPhoto by raisbeckfoto/iStock Unreleased via Getty Images\nWhen Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.\nCurrent consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.\nCisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.\nThe numbers:\nSource: cons ests IBES data by Refinitiv as of 5/17/21\n\n\n\n\n\nThe story (in a nutshell):\nThe 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.\nThe CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.\nHere is a quick look at Cisco by segment:\nData source: Cisco earnings reports\nReaders should note the \"Security\" line in both the middle and last set of rows.\nSecurity as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.\nNote too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.\nPerformance:\n21-year performance of Cisco vs. S&P 500:\nSource: YCharts software\n6-year performance of Cisco vs. S&P 500:\nSource: YCharts software\nThe last 6 years show some outperformance for Cisco relative to the S&P 500, which I was surprised to see after running the chart.\nCisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.\nSummary/Conclusion:\nCisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.\nClients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.\nPeople often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.\nAfter tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.\nThat moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.\nThe irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.\nWe just have to watch that underlying business.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":194016664,"gmtCreate":1621325474258,"gmtModify":1704355801477,"author":{"id":"3577159132944528","authorId":"3577159132944528","name":"13Wonders","avatar":"https://static.tigerbbs.com/4a3d01f818e43949adaf610d8e431348","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3577159132944528","idStr":"3577159132944528"},"htmlText":"Like and commment&nbsp;","listText":"Like and commment&nbsp;","text":"Like and commment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/194016664","repostId":1109268627,"repostType":4,"repost":{"id":"1109268627","kind":"news","pubTimestamp":1621324905,"share":"https://ttm.financial/m/news/1109268627?lang=&edition=fundamental","pubTime":"2021-05-18 16:01","market":"us","language":"en","title":"Cisco Earnings Preview: Stock Moving On The 'Value' Label","url":"https://stock-news.laohu8.com/highlight/detail?id=1109268627","media":"seekingalpha","summary":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\"","content":"<p><b>Summary</b></p>\n<ul>\n <li>Cisco's all-time-high was $82 in April 2000.</li>\n <li>Cisco's issues are still the same, but \"value\" stocks are getting a better bid today.</li>\n <li>The 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.</li>\n <li>The company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.</li>\n <li>Cisco will face easier comps the next few quarters.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aab11b905c127f0a275b5b6a47fc9f0b\" tg-width=\"768\" tg-height=\"511\"><span>Photo by raisbeckfoto/iStock Unreleased via Getty Images</span></p>\n<p>When Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.</p>\n<p>Current consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.</p>\n<p>Cisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.</p>\n<p><b>The numbers:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7c371a6667991c668105697a290aa0d9\" tg-width=\"457\" tg-height=\"645\"><span>Source: cons ests IBES data by Refinitiv as of 5/17/21</span></p>\n<table>\n <tbody>\n  <tr></tr>\n </tbody>\n</table>\n<p><b>The story (in a nutshell):</b></p>\n<p>The 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.</p>\n<p>The CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.</p>\n<p><b>Here is a quick look at Cisco by segment:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/61431ed6047209716d2a0a5754406721\" tg-width=\"640\" tg-height=\"159\"><span>Data source: Cisco earnings reports</span></p>\n<p>Readers should note the \"Security\" line in both the middle and last set of rows.</p>\n<p>Security as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.</p>\n<p>Note too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.</p>\n<p><b>Performance:</b></p>\n<p>21-year performance of Cisco vs. S&amp;P 500:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aec307711b74baa1318dbcc58877620d\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p><b>6-year performance of Cisco vs. S&amp;P 500:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e0e3557fa7420757993c89dd4aa96f6c\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p>The last 6 years show some outperformance for Cisco relative to the S&amp;P 500, which I was surprised to see after running the chart.</p>\n<p>Cisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.</p>\n<p><b>Summary/Conclusion:</b></p>\n<p>Cisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.</p>\n<p>Clients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.</p>\n<p>People often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.</p>\n<p>After tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.</p>\n<p>That moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.</p>\n<p>The irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.</p>\n<p>We just have to watch that underlying business.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Cisco Earnings Preview: Stock Moving On The 'Value' Label</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCisco Earnings Preview: Stock Moving On The 'Value' Label\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic ...</p>\n\n<a href=\"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"CSCO":"思科"},"source_url":"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1109268627","content_text":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.\nThe company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.\nCisco will face easier comps the next few quarters.\n\nPhoto by raisbeckfoto/iStock Unreleased via Getty Images\nWhen Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.\nCurrent consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.\nCisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.\nThe numbers:\nSource: cons ests IBES data by Refinitiv as of 5/17/21\n\n\n\n\n\nThe story (in a nutshell):\nThe 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.\nThe CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.\nHere is a quick look at Cisco by segment:\nData source: Cisco earnings reports\nReaders should note the \"Security\" line in both the middle and last set of rows.\nSecurity as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.\nNote too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.\nPerformance:\n21-year performance of Cisco vs. S&P 500:\nSource: YCharts software\n6-year performance of Cisco vs. S&P 500:\nSource: YCharts software\nThe last 6 years show some outperformance for Cisco relative to the S&P 500, which I was surprised to see after running the chart.\nCisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.\nSummary/Conclusion:\nCisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.\nClients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.\nPeople often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.\nAfter tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.\nThat moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.\nThe irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.\nWe just have to watch that underlying business.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4365559,"gmtCreate":1621328042701,"gmtModify":1680789466578,"authorId":3573472992263411,"author":{"id":3573472992263411,"idStr":"3573472992263411","authorId":3573472992263411,"name":"Huathk","avatar":"https://static.tigerbbs.com/43c7168c646d9ea6805194ed0003f1cc","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":194016664,"type":1,"supId":4365172,"prevId":0,"content":"K","text":"K","html":"K"},{"id":4365172,"gmtCreate":1621325571294,"gmtModify":1680789461869,"authorId":3581993954812723,"author":{"id":3581993954812723,"idStr":"3581993954812723","authorId":3581993954812723,"name":"BraveAAC","avatar":"https://static.tigerbbs.com/5a1e3a611a362857570052e45ff04ad3","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":194016664,"type":1,"supId":0,"prevId":0,"content":"Comment me back too  [真香] [真香] [真香]","text":"Comment me back too  [真香] [真香] [真香]","html":"Comment me back too  [真香] [真香] [真香]"}],"langContent":"EN"},{"id":194016995,"gmtCreate":1621325443017,"gmtModify":1704355800667,"author":{"id":"3576232257279797","authorId":"3576232257279797","name":"dandan_4896","avatar":"https://static.tigerbbs.com/d8b00e27a4dd6f248e38c3d78f21f188","vip":1,"crmLevel":2,"crmLevelSwitch":1,"authorIdStr":"3576232257279797","idStr":"3576232257279797"},"htmlText":"my reservist got deferred le","listText":"my reservist got deferred le","text":"my reservist got deferred le","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/194016995","repostId":1109268627,"repostType":4,"repost":{"id":"1109268627","kind":"news","pubTimestamp":1621324905,"share":"https://ttm.financial/m/news/1109268627?lang=&edition=fundamental","pubTime":"2021-05-18 16:01","market":"us","language":"en","title":"Cisco Earnings Preview: Stock Moving On The 'Value' Label","url":"https://stock-news.laohu8.com/highlight/detail?id=1109268627","media":"seekingalpha","summary":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\"","content":"<p><b>Summary</b></p>\n<ul>\n <li>Cisco's all-time-high was $82 in April 2000.</li>\n <li>Cisco's issues are still the same, but \"value\" stocks are getting a better bid today.</li>\n <li>The 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.</li>\n <li>The company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.</li>\n <li>Cisco will face easier comps the next few quarters.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aab11b905c127f0a275b5b6a47fc9f0b\" tg-width=\"768\" tg-height=\"511\"><span>Photo by raisbeckfoto/iStock Unreleased via Getty Images</span></p>\n<p>When Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.</p>\n<p>Current consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.</p>\n<p>Cisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.</p>\n<p><b>The numbers:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7c371a6667991c668105697a290aa0d9\" tg-width=\"457\" tg-height=\"645\"><span>Source: cons ests IBES data by Refinitiv as of 5/17/21</span></p>\n<table>\n <tbody>\n  <tr></tr>\n </tbody>\n</table>\n<p><b>The story (in a nutshell):</b></p>\n<p>The 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.</p>\n<p>The CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.</p>\n<p><b>Here is a quick look at Cisco by segment:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/61431ed6047209716d2a0a5754406721\" tg-width=\"640\" tg-height=\"159\"><span>Data source: Cisco earnings reports</span></p>\n<p>Readers should note the \"Security\" line in both the middle and last set of rows.</p>\n<p>Security as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.</p>\n<p>Note too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.</p>\n<p><b>Performance:</b></p>\n<p>21-year performance of Cisco vs. S&amp;P 500:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/aec307711b74baa1318dbcc58877620d\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p><b>6-year performance of Cisco vs. S&amp;P 500:</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e0e3557fa7420757993c89dd4aa96f6c\" tg-width=\"640\" tg-height=\"426\"><span>Source: YCharts software</span></p>\n<p>The last 6 years show some outperformance for Cisco relative to the S&amp;P 500, which I was surprised to see after running the chart.</p>\n<p>Cisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.</p>\n<p><b>Summary/Conclusion:</b></p>\n<p>Cisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.</p>\n<p>Clients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.</p>\n<p>People often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.</p>\n<p>After tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.</p>\n<p>That moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.</p>\n<p>The irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.</p>\n<p>We just have to watch that underlying business.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCisco Earnings Preview: Stock Moving On The 'Value' Label\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-18 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic ...</p>\n\n<a href=\"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"CSCO":"思科"},"source_url":"https://seekingalpha.com/article/4429529-cisco-earnings-preview-stock-moving-on-the-value-label","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1109268627","content_text":"Summary\n\nCisco's all-time-high was $82 in April 2000.\nCisco's issues are still the same, but \"value\" stocks are getting a better bid today.\nThe 6% free-cash-flow yield is compelling, but intrinsic value without a core change to the business might be mid $60s max.\nThe company is \"caught in the middle\" between the '90s legacy business and trying to establish new growth products and services, and it hasn't gone well.\nCisco will face easier comps the next few quarters.\n\nPhoto by raisbeckfoto/iStock Unreleased via Getty Images\nWhen Cisco Systems (CSCO) reports their fiscal Q3 '21 financial results after the bell on Wednesday, May 19, 2021, given the current consensus estimates, the expected 5% y/y growth rate in revenue will be the first quarter of y/y revenue growth since October '19.\nCurrent consensus is expecting $0.82 in earnings per share on $12.56 billion in revenue for expected y/y growth of 4% and 5%, respectively.\nCisco is lapping the April '20 quarter where revenue fell 8% y/y and EPS grew just 1%.\nThe numbers:\nSource: cons ests IBES data by Refinitiv as of 5/17/21\n\n\n\n\n\nThe story (in a nutshell):\nThe 1990s mega-cap tech giant grew revenue 50% y/y in the late 1990s only to see that growth and the stock come to a crashing halt in the early 2000s and ultimately watching the legacy switching and routing business become low single-digit growers even now.\nThe CEO Chuck Robbins is trying to convert Cisco into a security firm but it's been a struggle. To turn a hardware into a software firm is the toughest of transitions.Hereis a recent earnings preview that talks about Cisco's transition.\nHere is a quick look at Cisco by segment:\nData source: Cisco earnings reports\nReaders should note the \"Security\" line in both the middle and last set of rows.\nSecurity as a percentage of the business hasn't changed much and it's y/y growth has actually slowed but some of that is obviously pandemic-related.\nNote too that 81% of the business is the legacy \"infrastructure platforms\" and the services business. Note too the respective growth rates of both.\nPerformance:\n21-year performance of Cisco vs. S&P 500:\nSource: YCharts software\n6-year performance of Cisco vs. S&P 500:\nSource: YCharts software\nThe last 6 years show some outperformance for Cisco relative to the S&P 500, which I was surprised to see after running the chart.\nCisco today is a lower-beta value stock, which has come back in vogue since the Presidential election in early November, 2020.\nSummary/Conclusion:\nCisco is a low-single-digit organic EPS and revenue grower trading at 16x EPS for an expected \"average\" 3-year EPS growth rate of 4% on revenue growth of 2%.\nClients hold a small position in the stock since it was so out-of-favor from a sentiment standpoint, but unless Chuck Robbins can pull that magical rabbit out of his hat and given the growth history of Security and Applications, \"fair value\" for Cisco might be mid-$60s at the best today.\nPeople often forget, value stocks can trade at a valuation premium too, it's not just growth stocks, since when \"value\" is working like it is today, stocks will be bought to chase the style.\nAfter tax-reform in 2017, Cisco spent a lot of money buying back shares, and pulled down their cash position from $74 billion in late 2017, to just $30.5 billion today.\nThat moved the stock from $36 in late 2017, to the $55-57 area in mid-2019.\nThe irony of this preview is that this is a stock that could work in this market environment as \"growth investing\" fades and value stocks start to see \"PE expansion\" or multiple expansion.\nWe just have to watch that underlying business.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4365564,"gmtCreate":1621328065036,"gmtModify":1680789469396,"authorId":3573472992263411,"author":{"id":3573472992263411,"idStr":"3573472992263411","authorId":3573472992263411,"name":"Huathk","avatar":"https://static.tigerbbs.com/43c7168c646d9ea6805194ed0003f1cc","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":194016995,"type":1,"supId":4365171,"prevId":0,"content":"K","text":"K","html":"K"},{"id":4365171,"gmtCreate":1621325561399,"gmtModify":1680789460816,"authorId":3577159132944528,"author":{"id":3577159132944528,"idStr":"3577159132944528","authorId":3577159132944528,"name":"13Wonders","avatar":"https://static.tigerbbs.com/4a3d01f818e43949adaf610d8e431348","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":194016995,"type":1,"supId":0,"prevId":0,"content":"Like and comment ","text":"Like and comment ","html":"Like and comment "}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":24,"commentSize":9,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}