BUZZ at Opening Bell: Cisco and NetApp CLIMB, Facebook TESTS All-Time Low
Shares of Cisco Systems (NASDAQ:CSCO) jumped more than 7 percent in early trading. The company yesterday announced that net income for its fourth quarter rose to $1.92 billion (36 cents per share), compared to $1.23 billion (23 cents per share) a year earlier. The company also raised its quarterly dividend 75 percent to 14 cents a share. “As a result of our strong performance, continued execution on our plan to deliver profitable growth, and commitment to shareholders, for the full fiscal year, we delivered revenue growth of 7 percent as well as a record year in revenue and earnings per share,” stated Cisco Chairman and CEO John Chambers.
Limited Brands (NYSE:LTD) shares fell 1.14 percent at the opening bell. The women’s apparel and beauty care company said second quarter net income dropped 37.9 percent to $143.6 million (49 cents per share), compared to $231.2 million (73 cents per share) a year earlier. Revenue also declined 2.4 percent to $2.4 billion, but the company still beat top and bottom line estimates.
Applied Materials (NASDAQ:AMAT) shares fell 2.92 percent this morning after yesterday reporting financial results for the recent quarter. Net income plunged 54.2 percent to $218 million (17 cents per share), compared to $476 million (36 cents per share) last year. “We delivered solid financial performance in line with our outlook despite challenging industry conditions in semiconductor, display and solar,” said Mike Splinter, chairman and chief executive officer. “Economic uncertainty is weighing on top of a seasonal pullback to produce weaker near-term demand.”
Facebook (NASDAQ:FB) shares are down 4.91 percent this morning and were 7 cents away from their all-time low. CNBC reports that the social media giant has scheduled a hearing on issuing stock without registering with the Securities and Exchange Commission, which should help speed up the Instagram acquisition. Also, the period for which insiders must hold there shares expires today, so expect insider selling to public investors. Will Facebook set new stock price lows today?
Shares of NetApp (NASDAQ:NTAP) are up 1.11 percent in early trading, despite reporting a 54.3 percent decline in earnings. For the first quarter, net income came in at $63.8 million, compared to $139.5 million a year earlier. “NetApp produced non-GAAP earnings per share above and revenue in line with our prior guidance. In Q1, we announced further innovations in Data ONTAP 8.1 that will enable customers to achieve an agile data infrastructure environment to cope with their dynamic business requirements,” said Tom Georgens, president and chief executive officer. “We continue to deliver on multiple fronts, advancing our technology and partnerships. With our best-of-breed partnering strategy and ongoing innovation-led solutions, we enable our customers to scale their business without limits.”
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