US Earnings – Cisco Q1

Posted on | by Leon Hinde | Leave a Comment on US Earnings – Cisco Q1

Despite reporting better-than-expected Q1 17 fiscal earnings, shares of Cisco systems have traded down to a 3-month low of $30.00 in late NY trade.

The tech giant announced Q1 EPS of 61 cents per share versus expectations of 59 cents per share on reported revenue of $12.4 billion, which beat the street’s expectation of $12.33 billion in revenue.

The share price has dropped due weaker forward guidance, as the company believes the current quarter revenue could drop 2% to 4% compared  to the year-ago quarter. Analysts had forecasted  a 2% rise in revenue over the same period. As a result, Cisco is expecting EPS to drop into the 55 to 57 cents per share range.

With the company expecting weaker growth, the share price could slip back to the $26.50 support level last traded in early May.

Chart - CISCO
Chart – CISCO

James Hardie – Earnings Update

Posted on | by Leon Hinde | Leave a Comment on James Hardie – Earnings Update

James Hardie  half year (ended 30 September 2016) earnings show net operating profit of US$141m, an increase of 10% on the same time last year. Group Adjusted EBIT for the half US$204 million, also up 10% on last year.

The James Hardie earnings update supports our view that JHX remains well positioned to benefit from the ongoing recovery in US housing construction.

Overnight, US housing Starts data was released. On an annualised basis, October data showed 1.3m in October compared to expectations of 1.1m. Building Permits annualised 1.23 in October compared to expectations for 1.2m

FY17 revenue US$2b, EBITDA US$470m, EPS US$0.60 and DPS $0.44, placing the stock on a forward yield of 3%. We expect EPS growth of 10%+ in to FY17 and FY18.

Our algorithm engines triggered a buy signal earlier this week.

jhx
Chart – James Hardie