Earnings Roundup: Cisco (CSCO) Up, Wal-Mart (WMT) Down


Cisco's ( CSCO ) dividend increase and Wal-Mart's ( WMT ) overseas growth are among this morning's earnings headlines. But the two stocks are headed in opposite directions.

Cisco shares - which had fallen on hard times since April - are up 7.5% this morning on the strength of the company's 56% earnings increase. Investors are also flocking to the tech stock for the bigger dividend it plans to pay. The company announced that it is upping its quarterly dividend from 8 cents to 14 cents.

Wal-Mart's second-quarter profits also grew. But shares of America's largest retailer have retreated 3% this morning.

The company's $1.18-per-share in earnings was a 5.7% improvement from the $1.09 per share it earned in the same quarter a year ago. However, sales fell short of analyst expectations, negating the better-than-anticipated profits and strong full-year earnings outlook.

Despite today's pullback, Wal-Mart's future looks bright. International sales are growing rapidly, increasing 6.4% last quarter. And full-year earnings guidance improved to a $4.83-$4.93 range from a $4.72-$4.92 back in February.

But Wal-Mart's growth outlook couldn't match Cisco's.

Revenue from Cisco's recent purchase of video company NDS will start to kick this quarter - one reason the company expects revenue growth as high as 6%.

Should profits continue to increase at the clip they did last quarter, perhaps the company's dividend - which is just a year old - will continue to swell.

If so, that should attract more investors back to what was once the world's most valuable company.  

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: CSCO , WMT

Wyatt Investment Research

Wyatt Investment Research

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