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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: JRI who wrote (42110)	2/6/2001 6:52:21 PM
From: Paul Shread	Respond to of 42787

It's certainly true that the worst news is now out, and I expect yesterday's lows to hold, but CSCO's outlook was just dismal: Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Brokerage firm estimates will be coming down sharply; projections for revenues for the next two quarters had been at $15 bln or better; Cisco's guidance suggests that the number will be closer to $13.5 bln. Significantly lower gross margins indicate that EPS estimates will also be coming down significantly. Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Also sees gross margins below prior estimates at about 60% from 61.8% in Jan qtr and 63.5% in Oct qtr. Q&A now getting underway. Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Company sees Q3 revenues flat to down 5% and Q4 flat with Q3 -- both of these figures are well below market estimates. Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Will probably grow in the 40% range in FY01; also believe that FY02 can be 30-50%. The 40% rate suggests a marked slowdown in the next two quarters given the 60% growth to date. Cisco Systems (CSCO) 35 3/4 +1 3/16: -- Update -- Guidance: more conservative for Q3 and Q4, including a much wider range of revenue estimates. Chambers says that we are in "at least" a two quarter slowdown; he is cautiously optimistic for second half of year assuming Fed continues to ease. Still awaiting specific numbers.