SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Waiting for the big Kahuna
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Joan Osland Graffius who wrote (11451)12/13/1997 9:20:00 AM
From: bearshark  Read Replies (2) of 94695
 
Hi Joan: I have spent the last two hours with CSCO's financials. Therre is a lot of information there. At its price, everyone must be looking at CSCO.

My main problem with CSCO is that their quarter to quarter rate of sales increase if falling. That is not the year to year comparison but the same year' s quarter to quarter comaparison. During 1996, quarter to quarter sales were increasing between about 15 and 18 percent. Then they went to increases of about 10 to 11 percent. In recent quarters, the increases were down at 3 to 7 percent. CSCO explains that its lower price and margin items are selling faster than its big buck items. The negative sales patterns, assuming nothing else happens, should become obvious on year to year comparisons around mid-1998.

However, and it is a big however. However, CSCO is an acquisition minded company. All sorts of things can happen through acquisitions. During 1997, CSCO had significant expenses for purchased R&D acquired through acquisitions. That had a significant impact on its EPS. Additionally, CSCO has investment income that runs through its income statement. So CSCO's EPS free of this stuff is about $2.05 per share for the latest fiscal year. With this stuff, it is much lower. CSCO has managed to keep its uncluttered EPS growing quarter to quarter and I assume it has the ability to tweak earnings.

When all is said and done, who knows what investors will perceive from CSCO's financial reporting. Sales may look bad but EPS may look better. But an acquisition can make sales look beter too.

Then there is the significant foreign exposure and their method of selling. But that is another story. Its all in the financials.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News