Markets appear ready to rebound today after a number of weak sessions and some positive earnings news from tech hardware maker Cisco and a pair of retailers.
Cisco (CSCO) reported adjusted EPS of 48 cents per share on revenue of $11.9 billion. Analysts had expected 46 cents on $11.78 billion in sales. The company said it expects fiscal second-quarter revenue to rise between 3.5% and 5.5% from the year-ago quarter; analysts had been expecting 4.7%. Adjusted earnings are expected to be 47 cents to 48 cents, compared to estimates for 48 cents. The company's CEO, John Chambers, said if the global economy is to recover, the U.S. will have to lead the rest of the world.
“It's not going to come from Europe, and the emerging economies are not strong enough,” he said.
Research firm Gartner issued a recent report showing a 46.9% rise in smartphone sales in the third quarter of 2012, compared to the same quarter of 2011. Apple (AAPL) and Samsung dominated the category, with Samsung selling 55 million phones in the quarter, compared to 23.6 million for Apple.
Advanced Micro Devices
The chipmaker denied reports that it is considering a sale following reports from Reuters that AMD (AMD) hired JP Morgan Chase to explore options.
The office supply chain reported adjusted EPS of 46 cents per share on revenue of $6.35 billion. Analysts had expected EPS of 45 cents per share on revenue of $6.45 billion. Staples (SPLS) said retail sales were flat in North America while delivery sales rose by 1%.
Abercrombie & Fitch
Young-person's clothing retailer Abercrombie & Fitch (ANF) reported earnings of 87 cents per share on sales of $1.17 billion. Analysts had been expecting EPs of 60 cents on revenue of $1.11 billion. The company's CEO, Mike Jefferies, said U.S. stores saw “healthy growth” on the back of a strong quarter a year ago as well as some improvement in its international business.