Market News

August 15, 2013  Thu 7:32 AM CT


Cisco to Lay Off 4,000 as Margins Shrink

The networking giant reported adjusted earnings of $0.52 per share on revenues of $12.42 billion in its quarterly report after yesterday's close, above the consensus estimates of $0.51 EPS on revenues of $12.41 billion. But the technology stalwart's shares fell after issuing earnings guidance of $0.50 to $0.51 per share on revenue growth of 3 percent to 5 percent for the current quarter, at the low end of forecasts. The company, also reported that gross margins slipped to 59.2 percent from 60.6 percent, is laying off about 5 percent of its workforce. CSCO is down more than 8 percent to $24.24 in the pre-market.

Wal-Mart Cuts Guidance as Sales Fall Short

The retail behemoth this morning reported second-quarter adjusted earnings of $1.25 per share, matching market expectations, but same-store sales fell 0.3 percent compared to the consensus forecast for a 0.7 percent gain. Wal-Mart also lowered its full-year outlook to $5.10 to $5.30 EPS, compared with previous estimates of $5.29 to $5.40 earnings per share. WMT is down about 2.3 percent to $74.65 this morning on my tradeMONSTER extended-hours platform.
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