Revenues fell 7% YoY
US (SPY) based Cisco’s (CSCO) Switching business saw revenues fall 7% YoY (year-over-year) in fiscal 1Q17. Revenues in this segment fell from $4 billion in fiscal 1Q16 to $3.7 billion in fiscal 1Q17. According to Cisco, this 7% fall was driven by “weakness in campus partially offset by continued strong momentum in ACI, which was up 33%.” Campus business accounts for over 65% of Cisco’s Switching revenue.
Switches contain ports to connect different network segments. Switches are similar to hubs (a networking device that connects multiple devices to the network using cables) but offer better performance. Switching is a networking technology used in campuses, branch offices, and data centers. Switches are used within buildings in local-area networks (or LANs) and across great distances in wide-area networks (or WANs).
Cisco has a market share of 56.8% in the Ethernet Switching business
According to IDC, Cisco Systems’ (CSCO) revenues fell 2.6% YoY (year-over-year) in the Ethernet switching space in calendar 2Q16. Its market share fell to 56.8% that quarter as compared to 59.0% in 1Q16 and 60.0% in 2Q15. Other major players in this market include Hewlett Packard Enterprise (HPE), Juniper Networks (JNPR), and China’s (FXI) Huawei. The worldwide Ethernet switching market grew 3% YoY to ~$6.0 billion at the end of 2Q16. Brocade (BRCD) is another small player in the switching space.
HPE’s Ethernet switching revenues fell 34.8% YoY in 2Q16. The company has a market share of 6.0% as compared to 9.2% in 4Q15 and 9.7% in 1Q16. Huawei’s revenues rose 44.0% YoY in 2Q16, whereas Juniper Networks’ revenues fell 4.3% YoY in the switching business.
Cisco’s (CSCO) wireless business's revenues fell 2% YoY (year-over-year) in fiscal 1Q17.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.