US Stock Markets Advance Thursday

Cisco Systems jumps on earnings

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Aug 16, 2018
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U.S. stock markets were trading in positive territory on Thursday, ahead of more positive corporate earnings.

Shares of Cisco Systems Inc. (CSCO, Financial) jumped on Thursday morning after the company posted fourth-quarter earnings per share of 70 cents on revenue of $12.85 billion, a 5.9% growth. It beat earnings estimates by 1 cent and revenue estimates by $80 million.

In the fourth quarter of 2017, on a GAAP basis, total gross margin, product gross margin and service gross margin were 61.7%, 60.2% and 66.0%, respectively, as compared with 62.2%, 60.3% and 67.8%, respectively, a year earlier.Â

Moreover, the company returned $23.6 billion to shareholders through share buybacks and dividends. Cisco declared and paid cash dividends of $1.24 per common share, or $6.0 billion.

Cisco repurchased 432 million shares at an average price of $40.88 per share for an aggregate purchase price of $17.7 billion.

Now the company expects for the first quarter of fiscal 2019 revenue growth of 5-7%, a gross margin of 63-64% and an operating margin of 30-31%. Also, it is expecting non-GAAP earnings per share between 70 cents and 72 cents.

Gainers

• Walmart Inc. (WMT, Financial)

• Boeing Co. (BA, Financial)

• Newell Brands Inc. (NWL, Financial)

• Foot Locker Inc. (FL, Financial)

Losers

• NetApp Inc. (NTAP, Financial)

• Coty Inc. (COTY, Financial)

• Mattel Inc. (MAT, Financial)

• Tapestry Inc. (TPR, Financial)

Global markets

The main European stock markets traded in the green. The U.K.'s FTSE 100 advanced 0.85%, France's CAC 40 gained 0.73%, Germany's Dax jumped 0.40% and Spain's Ibex 35 rose 0.56%.

In Asia, Japan's Nikkei 225 retreated 0.05%, India’s BSE Sensex fell 0.50%, Hong Kong's Hang Seng lost 0.82% and China's Shanghai Composite fell 0.66%.

Disclosure: The author holds no positions in any stocks mentioned.