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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 70.92

-1.7%

1:22 PM EST

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To: RetiredNow who wrote (66609)	11/27/2004 11:41:44 PM
From: Elroy	Read Replies (2) of 77397

It is well known that Chinese companies are putting the big squeeze on manufacturing company's margins and that includes Cisco. CSCO doesn't manufacture anything, they outsource it to companies like SLR, JBL and Hon Hai, and those companies have most of their plants in low cost areas like China, Mexico and Eastern Europe. Revenues are also hard to grow, which also makes it hard to grow EPS. CSCO grew revenues 20% in the trailing 4 quarters over the four quarters preceding them, and grew EPS 27% in the same periods of comparison. The current outlook is for revenues to grow 11% next year, and EPS to grow 15%. Considering CSCO generally beats its forecasts, both its last year's growth (20% revenues and 27% EPS) and outlook contradict your statement. They are growing very well for a company their size, faster than IBM, HPQ, SUNW, and even faster (at least last year) than Dell.

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