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What’s happening: Shares of Cisco Systems rose in after-hours trading on Wednesday, following the company’s fiscal third-quarter financial results.
What happened: The networking-equipment provider posted stronger-than-expected results and announced the retirement of CFO Scott Herren.
Cisco also raised its outlook for the year, driven by the AI boom.
How were the results: The San Jose, California-based company reported low double-digit growth in sales for the quarter.
Why it matters: Cisco Systems benefited from an acceleration in datacenter investment from tech gains increasing their capex to meet higher demand for AI-based applications.
Cisco said gains in the latest quarter were driven by higher AI infrastructure orders, which exceeded $600 million, taking the company’s annual total past $1 billion, one quarter ahead of target.
The company said its product orders surged 20% year-over-year, up 9% excluding Splunk, with growth seen across all customer markets.
Cisco also said its CFO Scott Herren will be replaced by Mark Patterson, who is currently serving as the company’s chief strategy officer, on July 27.
Management guided to revenues of $14.5-$14.7 billion for the fiscal fourth quarter, while projecting adjusted earnings of 96-98 cents per share, above market estimates of 95 cents per share.
Cisco raised its fiscal 2025 revenue outlook from $56-$56.50 billion to $56.5-$56.7 billion and its earnings guidance from $3.68-$3.74 per share to $3.77-$3.79 per share.
How shares responded: Cisco’s shares rose 2.8% to $63.00 in the extended trading hours on Wednesday, following the release of quarterly results. The stock has jumped around 7% over the past month.
What to watch: Investors will continue monitoring higher demand for AI infrastructure, which is expected to provide a significant boost to the company’s overall results ahead.
Context: The CAD/USD forex pair moved higher this morning amid weakness in the US dollar index.
Details: The Canadian dollar surged to a five-month high of 1.378 on May 6. The currency paired gains since then due to the Bank of Canada’s dovish outlook and continued trade concerns.
Data released last week showed Canada’s employment rose by just 7,400 in April, while the unemployment rate increased to 6.9% in April, from 6.7% in the previous month. This release fuelled speculations of the Bank of Canada cutting interest rates as early as June.
Meanwhile, data released on Wednesday showed Canada’s total value of building permits fell by 4.1% to C$12.9 billion in March, compared to a 2.9% gain in the previous month. Car registrations in country rose to 189,152 units in March, versus 125,402 units in the previous month, reaching the strongest level since June 2019.
Some weakness in the US dollar lent support to the CAD/USD forex pair this morning. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell more than 0.1% to 100.90.
However, a decline in the price of crude oil, one of Canada’s major exports, weighed on the loonie. WTI crude oil prices dipped about 2.1% to $61.81 a barrel this morning.
The CAD/USD pair rose around 0.1% to 1.3970 this morning.
What to watch: Investors await the release of economic reports on Canada’s CFIB business barometer (1500 UAE Time), housing starts (1615 UAE Time), manufacturing sales (1630 UAE Time) and wholesale sales (1630 UAE Time) today. Canada’s CFIB business barometer long-term index, which rose by around 10 points to 34.8 in April, is expected to edge lower to 34.6 in May.
Canada’s housing starts, which fell 3.3% to 214,155 units in March, are expected to increase to 227,500 units in April. Analysts expect manufacturing sales to decline 1.9% in March, compared to a 0.2% gain in February, while wholesale sales are projected to decline by 0.3% in March following a 0.3% gain in the previous month.
Other Markets: Asian indices traded mostly lower this morning, with the Japan’s Nikkei 225 and China’s Shanghai Composite Index down by 1.10% and 0.33%, respectively, and Hong Kong’s Hang Seng Index up by 0.11%.
Russian President Vladimir Putin and US President Donald Trump will not attend the first direct peace talks between Russia and Ukraine in three years today. The news sent the RUB/USD pair lower in forex trading this morning.
Australia’s employment rose by 89,000 to a new record high of 14.64 million in April. The latest reading also topped market estimates of 20,000 job adds, lending support to the AUD/USD forex pair.
New Zealand’s annual food inflation accelerated to 3.7% in April, from 3.5% in the previous month. The latest inflation reading being the highest since January 2024 sent the NZD/USD pair lower in forex trading this morning.
Argentina’s consumer prices rose by 2.8% in April, easing from the 3.7% rise recorded in March, which lent support to the ARS/USD forex pair.
Colombia’s consumer confidence index declined 1.5 points to a reading of -8.6 in April, sending the COP/USD pair lower in forex trading this morning.
UK’s labour productivity (1230 UAE Time) and NIESR monthly GDP tracker (1600 UAE Time), Eurozone’s employment change (1300 UAE Time), industrial production (1300 UAE Time) and GDP growth rate (1300 UAE Time), South Africa’s gold production (1330 UAE Time) and mining production (1330 UAE Time), India’s M3 money supply (1530 UAE Time), Turkey’s foreign exchange reserves (1530 UAE Time), Brazil’s retail sales (1600 UAE Time) and business confidence (1800 UAE Time), US PPI (1630 UAE Time), retail sales (1630 UAE Time), initial jobless claims (1630 UAE Time), NY Empire State manufacturing index (1630 UAE Time), Philadelphia Fed manufacturing index (1630 UAE Time), continuing jobless claims (1630 UAE Time), Fed Chair Powell speech (1640 UAE Time), industrial production (1715 UAE Time), capacity utilization (1715 UAE Time), manufacturing production (1715 UAE Time), business inventories (1800 UAE Time), NAHB housing market index (1800 UAE Time), EIA natural gas stocks change (1830 UAE Time), 4-week bill auction (1930 UAE Time) and 8-week bill auction (1930 UAE Time), as well as Mexico’s interest rate decision (2300 UAE Time).
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