From the Wires
The Zacks Analyst Blog Highlights: Cisco Systems, Nike, Iconix Brand Group, PVH and Brown Shoe Co.
By: PR Newswire
Dec. 18, 2012 09:30 AM
CHICAGO, Dec. 18, 2012 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Cisco Systems Inc. (Nasdaq:CSCO), Nike Inc. (NYSE:NKE), Iconix Brand Group Inc. (Nasdaq:ICON), PVH Corporation (NYSE:PVH) and Brown Shoe Company Inc. (NYSE:BWS).
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Here are highlights from Monday's Analyst Blog:
Cisco to Sell Linksys
Reportedly, Cisco Systems Inc. (Nasdaq:CSCO) will be selling its Linksys wireless router unit. According to media reports, the company has hired Barclays (BCS) to help it sell the home wireless-router company.
This is yet another step by Cisco to exit its consumer-focused business, while strengthening its presence in corporate software and technology services.
In 2003, Cisco acquired Linksys for approximately $500 million in order to make an entry into the consumer networking market. However, strong competition has negatively affected the margins in this business, with a corresponding negative impact on the company's profits. Now, nearly 10 years later, it looks like Cisco is trying to get out of this market.
The current deal clearly reflects Cisco's strategy of downsizing its consumer business in order to save cost and expand in certain strategic areas, including cloud computing, which is viewed by many technology firms as a key area for future growth.
Over the past year, the company has closed several of its consumer businesses, such as the Flip video-camera unit, and reduced about 14% of its global workforce, or around 11,500 employees.
As a part of its cloud and networking expansion strategy, Cisco has made three acquisitions in November. The company has acquired Cariden, Meraki and Cloupia for $141 million, $1.2 billion and $125 million, respectively, in line with its growth strategy.
Nike Inc. (NYSE:NKE), a global leader in sports equipment and apparel, is expected to report its financial results for the second quarter of fiscal 2013 after the market closes on Thursday, December 20, 2012. The Zacks Consensus Estimate for the quarter is $1.00 per share, flat compared to earnings in the prior-year quarter.
Currently, the Zacks Consensus Estimate ranges between 97 cents – $1.04 a share. For the quarter under review, revenue is expected to be $6,019 million, according to the Zacks Consensus Estimate.
We believe the divestiture of these brands will help boost the company's bottom lines. Meanwhile, in an attempt to expand its global reach and market share, Nike is capitalizing on growth opportunities in emerging markets, especially China.
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About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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