In the latest trading session, Cisco Systems (CSCO) closed at $68.92, marking a +1.47% move from the previous day. This move outpaced the S&P 500's daily gain of 0.37%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.71%. Shares of the seller of routers, switches, software and services have appreciated by 1.52% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.04%, and the S&P 500's gain of 4.26%.The inve ...

Cisco Systems Inc. (NASDAQ:CSCO) is one of the best value stocks in Goldman Sachs’ portfolio. On September 22, 2025, Bank of America Securities analyst Tal Liani reiterated his bullish stance on the stock with a Buy rating and an unchanged price target of $85. Liani pointed to four major growth drivers supporting the outlook: the ongoing campus switching refresh cycle, increasing share in hyperscaler AI infrastructure, improving momentum in security, and synergies from the Splunk acquisition. BofA Reaffir ...

Group 1 - The article discusses the investment group led by Ian Bezek, which focuses on providing insights and updates on various stocks, including new ideas and macro analysis [1][2] - Ian Bezek has extensive experience as a hedge fund analyst and has conducted in-depth research in Latin American markets, particularly in Mexico, Colombia, and Chile [2] - The group offers features such as a Weekend Digest, trade alerts, and direct access to Ian, aimed at helping investors make informed decisions [1]

Core Insights - Celestica Inc. (CLS) and AST SpaceMobile, Inc. (ASTS) are significant players in the technology sector, with Celestica specializing in electronics manufacturing services and AST SpaceMobile focusing on space-based cellular broadband networks [1][2] Group 1: Celestica Inc. (CLS) - Celestica has over two decades of manufacturing experience and offers cloud-optimized data storage and networking solutions, driven by the demand for AI-based applications [4] - The company is diversifying its product offerings and expanding into high-value markets, which enhances business resilience by reducing dependence on a single industry [5] - Despite its strengths, Celestica faces margin pressures due to high research and development costs and stiff competition from industry giants like Foxconn and Flex [6] - Celestica's sales and EPS are expected to grow by 20.6% and 43% year-over-year in 2025, respectively, with a positive trend in EPS estimates [12] - The company has experienced a remarkable stock performance, gaining 424% over the past year, significantly outperforming the sector's growth of 30.1% [15][18] - Celestica's valuation metrics are more attractive, with a price/sales ratio of 2.13 compared to AST SpaceMobile's 69.34 [16] Group 2: AST SpaceMobile, Inc. (ASTS) - AST SpaceMobile is developing the first global cellular broadband network in space, utilizing a constellation of satellites to provide service directly to smartphones [2][10] - The company has launched five commercial satellites, with plans to deploy 45 to 60 more by Q1 2026, aiming to enhance cellular coverage in areas lacking terrestrial networks [7][10] - AST SpaceMobile's sales are projected to grow by an extraordinary 1,120% in 2025, but its EPS is expected to decline by 48.5% [12] - The company faces challenges from unfavorable macroeconomic conditions and competition from established players like SpaceX's Starlink, which may pressure its financial performance [11] - AST SpaceMobile's stock has gained 29.8% over the past year, but this is significantly lower than Celestica's performance [15]

Summary of UNIS (000938.SZ) Conference Call Company Overview - **Company**: UNIS (000938.SZ) - **Industry**: AI servers and networking solutions - **Market Cap**: Rmb79.8 billion / $11.2 billion - **Current Price**: Rmb27.90 - **12-Month Price Target**: Rmb31.40, indicating a potential upside of 12.5% [18] Key Financial Highlights - **2Q25 Performance**: - Net income increased by 99% QoQ to Rmb692 million, beating estimates by 19% [3] - Revenue rose by 28% QoQ to Rmb26.635 billion, a 27% YoY increase [7] - Gross margin (GM) decreased to 14.9% from 15.7% YoY, while operating margin (OPM) improved to 5.1% [7] - **Revenue Growth Drivers**: - Strong demand for computing infrastructure, particularly AI servers from Chinese cloud service providers (CSPs) [3] - Product mix upgrades and local chipset substitutions contributed to cost reductions and improved gross margins [3] Market Dynamics - **AI Server Demand**: - Management reported mid-double-digit YoY growth in server revenues for 1H25, primarily driven by AI servers for the China cloud market [2] - AI server revenue is projected to contribute 39% of total revenue by 2027, with a compound annual growth rate (CAGR) of 65% from 2025 to 2027 [2] - **Cloud Capex Expansion**: - Positive outlook on China’s cloud capital expenditure on AI infrastructure, supported by favorable AI-related policies [2][9] Earnings Revisions - **Net Income Estimates**: - Revised upward by 13% for 2025E, 12% for 2026E, and 14% for 2027E, reflecting higher revenue and gross margins [9] - **Revenue Projections**: - 2025E revenue increased from Rmb98.518 billion to Rmb103.097 billion, a 5% increase [10] - 2026E revenue revised from Rmb125.583 billion to Rmb131.620 billion, also a 5% increase [10] Valuation Metrics - **Current Valuation**: - Trading at 26.4x 2026E P/E, close to the target of 29.7x [1] - **Target Price Calculation**: - Target price of Rmb31.4 based on a target P/E multiple of 29.7x, derived from peer comparisons and expected EPS growth of 22% [10] Risks and Considerations - **Key Risks**: - Variability in the pace of China cloud capex expansion [17] - Competitive pressures from local players [17] - Uncertainty in AI server shipment ramp-up [17] Conclusion - **Rating**: Neutral - **Outlook**: Continued revenue growth anticipated from AI server demand and cloud infrastructure investments, though current valuation reflects much of this potential [1][9]

Cisco Systems (CSCO) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changing ...

Core Insights - Cisco Systems' international operations are crucial for understanding its financial strength and growth potential [1][2] - The company's dependence on international markets is a key determinant of its earnings stability and growth path [2][3] Revenue Performance - For the quarter ending July 2025, Cisco reported total revenue of $14.67 billion, a year-over-year increase of 7.6% [4] - EMEA generated $3.65 billion, accounting for 24.8% of total revenue, which was a decline of 4.86% from the projected $3.83 billion [5] - APJC contributed $2.21 billion, representing 15% of total revenue, exceeding the consensus estimate of $2.1 billion by 5.27% [6] Future Projections - Analysts expect Cisco to report revenues of $14.75 billion for the current fiscal quarter, reflecting a 6.6% increase year-over-year [7] - For the full year, total revenue is projected at $59.58 billion, a 5.2% increase from the previous year, with EMEA and APJC expected to contribute $15.61 billion and $8.39 billion, respectively [8] Market Dynamics - Cisco's reliance on international markets presents both opportunities and challenges, necessitating close monitoring of international revenue trends [9] - Analysts are focused on tracking these trends to refine earnings predictions, considering the impact of geopolitical factors and domestic market positions [10]

Core Insights - Cisco reported quarterly results that narrowly exceeded analysts' expectations, with revenue increasing by 7.6% year over year and net income rising to $2.82 billion, or 71 cents per share, compared to $2.16 billion, or 54 cents per share, in the same quarter last year [1] Financial Performance - For the fiscal first quarter, Cisco management projected adjusted earnings per share between 97 cents to 99 cents on revenue of $14.65 billion to $14.85 billion, slightly above the LSEG consensus of 97 cents per share on $14.62 billion in revenue [2] - For the full fiscal year 2026, Cisco forecasts adjusted earnings per share of $4 to $4.06 and revenue between $59 billion to $60 billion, compared to the LSEG consensus of $4.03 per share and $59.53 billion in revenue [2] Segment Performance - In the fiscal fourth quarter, Cisco generated $7.63 billion in networking revenue, a 12% increase, surpassing the StreetAccount estimate of $7.34 billion [3] - Cisco's security revenue for the quarter was $1.95 billion, up 9%, but below the StreetAccount estimate of $2.11 billion [3] Strategic Initiatives - Cisco announced collaborations to invest in artificial intelligence infrastructure with partners including BlackRock and Microsoft, and joined a Stargate data center initiative involving OpenAI and SoftBank [4] - The company introduced new switches and routers designed to handle AI workloads [4] Market Performance - Cisco's AI infrastructure orders from webscale customers in fiscal 2025 exceeded the original target of $1 billion, with orders more than double that amount [5] - Cisco shares have increased by 19% in 2025, outperforming the S&P 500, which has gained about 10% [5]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $366.2 million, a 14% increase year-over-year from $319.8 million in Q2 2024 and a 10% increase from $332.1 million in Q1 2025 [10] - Gross profit for Q2 2025 was $115.3 million, representing 31.5% of revenue, compared to 33.6% in the prior year quarter [10] - GAAP net income for Q2 2025 was $46.1 million or $0.99 per diluted share, compared to $8 million or $0.17 per diluted share in the prior year [12] - Non-GAAP adjusted net income was $15 million or $0.32 per diluted share, compared to $15.4 million or $0.33 per diluted share in Q2 2024 [12] - EBITDA for Q2 2025 was $84.5 million or 23.1% of revenue, compared to 12.8% in the prior year period [13] Business Line Data and Key Metrics Changes - The consumer end market experienced the strongest growth, while automotive and industrial markets remained flat as a percentage of total revenue [7] - Automotive market revenue was 19% of total product revenue, showing a year-over-year increase of 23.5% [35] - Industrial market showed gradual demand improvement, particularly in AI robotics and medical applications [22] - Computing market saw strong demand for AI-related applications, with significant opportunities in data centers [23] Market Data and Key Metrics Changes - Asia represented 78% of revenue, Europe 12%, and North America 10% [19] - The company reported double-digit growth in Asia, particularly in AI-related computing applications and EV automotive market in China [9][19] Company Strategy and Development Direction - The company aims to extend strong growth momentum with a projected revenue increase of 7% sequentially and 12% year-over-year in Q3 2025 [9] - Focus on new product initiatives, with over 100 new part numbers introduced, over 50% of which were automotive parts [18] - Emphasis on improving product mix and driving margin expansion through new product introductions and cost improvements [37][58] Management Comments on Operating Environment and Future Outlook - Management noted ongoing improvement in market conditions and demand across end markets, with inventory digestion extending particularly in automotive and industrial sectors [27] - The company is well-positioned with a broadened portfolio of products and increasing design wins to drive continuous growth and future margin expansion [27] Other Important Information - Cash flow provided by operations was $41.5 million for Q2 2025, with free cash flow of $21.1 million [13] - Total debt at the end of Q2 was approximately $54 million, with working capital around $871 million [14] Q&A Session Summary Question: How much of the demand in Asia is related to tariff-driven pull-ins? - Management indicated that tariff pull-ins are minimal, with demand driven by strong market conditions and new designs [33] Question: What is the status of inventory digestion in the automotive sector? - Management acknowledged ongoing inventory digestion but noted overall market improvement, with automotive revenue maintaining 19% quarter-over-quarter [35] Question: How do new products impact margin opportunities? - New products typically offer additional features that allow for premium pricing, which can improve overall cost structure and margins [37] Question: What is the growth expectation for AI-related products? - AI-related products, including PCIe packet switches, are expected to drive significant momentum, with multiple designs across various applications [42] Question: How is the company responding to pricing changes in the industry? - The company is focused on long-term customer relationships rather than short-term pricing strategies, aiming to leverage opportunities for growth [47] Question: What is the timeline for shifting back to in-house capacity? - Management confirmed good progress in qualifying products for internal wafer fabrication, with expectations for continued support from key customers [50]

Company Performance - Cisco Systems closed at $67.92, reflecting a -1.12% change from the previous day, underperforming the S&P 500's daily gain of 0.02% [1] - Over the past month, Cisco's shares gained 0.06%, lagging behind the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.93% [1] Earnings Forecast - Cisco is expected to report an EPS of $0.97, indicating an 11.49% growth compared to the same quarter last year [2] - The consensus estimate for quarterly revenue is $14.61 billion, representing a 7.12% increase from the previous year [2] Full Year Estimates - For the full year, earnings are projected at $3.79 per share and revenue at $56.59 billion, showing changes of +1.61% and +5.19% respectively from the prior year [3] - Recent analyst estimate revisions suggest a positive outlook for Cisco's business [3] Valuation Metrics - Cisco is currently trading with a Forward P/E ratio of 18.14, which is above the industry average Forward P/E of 16.2 [6] - The company has a PEG ratio of 3.32, compared to the Computer - Networking industry's average PEG ratio of 1.05 [6] Industry Ranking - The Computer - Networking industry ranks in the top 39% of all industries, with a current Zacks Industry Rank of 94 [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]