Cisco (NASDAQ: CSCO )
is under-performing. Its stock price is nearly 20% worse off than the
S&P 500 on a yearly comparison. The company's recent acquisition
history has been underwhelming, and its corporate execution has been
disappointing. The company appears to be moving into a zone whereby all
it has to do is internally execute, and the stock price will likely go
higher. For this reason alone, Cisco is worth a Foolish look.
What you already know about CiscoCisco's
second-quarter results came in with an 8% sales decline, when the
company had previously forecast a fall of 8%-10%. In addition, its sales
decline is hurting gross margins because they came toward the bottom
end of its 61%-62% guidance range. Given that it's guidance for the
upcoming third quarter was for a 6%-8% sales decline, it's reasonable to
assume that gross margins will be relatively weak in the next quarter
as well.
While this was obviously new news to the market,
Cisco's results actually told investors more about what they already
knew about the company.
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