Cisco rumbles lower | The time

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Wall Street hit the pause button. Cisco put a brake on the Dow Jones after disappointing revenue forecasts

Investors took a break after Wednesday’s price gains. Then the broad stock market indicator S & P500 closed at 6 points from its record level in February of 3,386.15. On Thursday, the S & P500 closed 0.2 percent lower.

Investors also watched news about the US job market. The Department of Labor reported on Thursday that the number of US aid applications fell below 1 million in July.

Cisco

Cisco went down 11 percent. The largest supplier of network equipment in the world came up with fine figures, but disappointed with its prospects. In the fourth quarter, which ran to the end of July, of its broken fiscal year, Cisco posted sales of $ 12.2 billion. While that was down 9 percent, revenue was better than the 12.1 billion analysts predicted.

The company says it saw a drop in sales in several segments and regions. Revenues from products (software and hardware) fell by 13 percent, but the services division saw revenues stabilize. Earnings at 62 cents per share were slightly lower than the market forecast of 65 cents.

For the current quarter, the company expects a decline in sales of 9 to 11 percent. That equates to revenues of between $ 11.7 and $ 12 billion, lower than the $ 12.3 billion that market researchers foresaw. The company also forecasts earnings per share between 69 and 71 cents, while analysts forecast 75 cents per share.

Still, the CEO is satisfied. ‘We demonstrated operational resilience in our 2020 financial year thanks to our strong relationship with the customer. For the future, we are rebalancing our investments in research and development. In this way we can serve our customers better in the future.

Lift

The Lyft taxi app went 5 percent lower after the quarterly figures showed that the corona virus punctured a hole in sales. Revenues in the second quarter plunged 61 percent from the same period last year to reach $ 339.3 million. The number of active users fell by 60 percent to 8.7 million. The net loss fell from $ 644.2 million last year to $ 437.1 million.

CEO Logan Green remains optimistic. “Although the number of rides has dropped significantly, we are encouraged by the recovery trends that we are starting to see.” The CEO says the number of journeys increased by 78 percent in July compared to the month of April.

Lyft is not the only one in the taxi industry to experience declining sales, as global lockdowns caused the taxi market to collapse in the second quarter. Last week, Uber also reported disappointing figures for its taxi branch. The number of taxi rides was 56 percent lower and the number of monthly active customers fell by 44 percent.

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