NEW YORK, NY / ACCESSWIRE / May 19, 2017 / Wal-Mart's shares soared higher on Thursday after the company released a first quarter earnings report that beat estimates. The company's turnaround efforts are paying off and investors were cheering. Cisco Systems on the other hand took a tumble after the worldwide leader in IT and networking reported even more job cuts and a disappointing outlook for Q4.
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Wal-Mart Stores, Inc.
Cisco Systems, Inc.
Wal-Mart Stores, Inc.'s shares soared to a new high on Thursday after the company released better than expected earnings results for the first quarter. Wal-Mart's e-commerce sales saw 63% growth in the period and was the fastest growth the segment has had in the last five years. One of the most exciting parts of Wal-Mart's report was its same store sales in the US climbing 1.4%. This was ahead of the 1.3% that the Street had called for and also marked the retailer's 11th straight quarter of seeing positive domestic sales growth. Earnings per share at $1.00 was ahead of the $0.96 that analysts had waited for. The only negative was that net revenue at $117.5 billion was a little less than the $117.8 billion that was expected. CEO Doug McMillon commented, "We can see that we're moving faster to combine our digital and physical assets to make shopping easier and more enjoyable for customers." Shares closed up 3.19% yesterday and hit as high as $77.66 during intra-day trading.
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Cisco Systems, Inc.'s shares plunged on Thursday and had their worst day since November of 2013 after the company announced even more job cuts and a grim outlook. Cisco will be cutting an extra 1,100 jobs as part of its expanded restructuring plan. Considering that the company had already announced it would cut 5,500 jobs (7% of the workforce) in August 2016, traders were not happy. Despite earnings for the fiscal third quarter being better than expected, Cisco is weary about its fiscal fourth quarter. CEO Chuck Robbins told CNBC, "We saw a significant slowdown in the U.S. public sector, particularly the federal business ? which is a pretty significant business for us ? due to the uncertainty in budgets." The stock was the biggest loser on the S&P 500 yesterday and closed down 7.21%.
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