OK. I know I've posted on this crap before, but someone has to explain the US stock market to me. With news today that Cisco Systems... The guys who make all the routers and other geeky things that keep the Internet humming, and allow you to read these pearls of wisdom... Reported a 37% jump in profit. The networking equipment-maker posted net income of $2.2 billion, or 35 cents a share, on sales of $9.55 billion for the quarter, compared to profit of $1.6 billion, or 26 cents a share, on revenue of $8.18 billion for the same period last year.
On a non-GAAP basis, the company reported earnings per share of 40 cents. Based on a consensus survey, analysts expected the company to report earnings per share of 36 cents on revenue of $9.54 billion.
So, am I going nuts here, but if they exceeded analysts expectations, why did the stock go down. But then again, these are the Wall Street Gurus who are currently writing off billions in bad mortgage ventures. So I guess the answer to my original question is... No one can explain it to me... Particularly the experts. Although, after having fouled up big time, they always walk away with millions. Isn't capitaism great?
George Parker
Blogging for:
Member since: 03 Jun 2008
Last login: 17 Nov 2009
Total Posts: 831
