Cisco Systems, Inc., SunPower Corporation Shares Fall After Earnings

Cisco Systems and SunPower released their latest earnings reports after closing bell tonight. Cisco reported adjusted profits of 57 cents per share or $2.9 billion and $11.58 billion in revenue for the most recently completed quarter. Wall Street had been looking for 56 cents per share and $11.55 billion in sales. In the year-ago quarter, the tech firm reported

SunPower posted non-GAAP losses of 64 cents per share on $1 billion in GAAP revenue and $1.1 billion in non-GAAP sales for the fourth quarter. In the same quarter a year ago, the solar firm reported $374.4 million in revenue and non-GAAP earnings of $1.73 per share.

Cisco Systems shares slip

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On a GAAP basis, Cisco Systems reported earnings of 47 cents per share or $2.3 billion for its second fiscal quarter, compared to 62 cents per share and $3.1 billion in the same quarter a year previously. Product revenue fell 4% year over year, while service revenue grew 5%. Deferred revenue rose 13% to $17.1 billion, including a 19% increase in deferred product revenue. The total gross margin was 62.8% on a GAAP basis, while the product gross margin was $61.1%. The non-GAAP total gross margin fell to 64.1%.

For the third fiscal quarter, the technology firm expects revenue to be flat to down 2% year per year. It expects GAAP earnings to be between 44 cents and 49 cents per share and non-GAAP earnings to be between 57 cents and 59 cents per share. Cisco Systems expects its non-GAAP gross margin to be between 63% and 64% for the quarter.

Shares of Cisco Systems ticked downward by as much as 0.55% to $32.64 in after-hours trades.

SunPower’s per-share losses widen

SunPower Corporation

SunPower’s GAAP net loss per share widened to $1.99 from 93 cents per share in the year-ago quarter. Adjusted EBITDA fell from $379.9 million in the year-ago quarter to -$20.8 million. The company took a $61 million charge related to the sale of above market polysilicon and $176 million in restructuring charges.

SunPower’s GAAP gross margin fell from 5.4% in the fourth quarter of 2015 to -3.1% in the fourth quarter of 2016. The non-GAAP gross margin plunged from 28.8% in the year-ago quarter to -2% in the most recently completed quarter.

The solar firm reiterated his outlook for $1.8 billion to $2.3 billion in GAP sales and $2.1 billion to $2.6 billion in non-GAAP revenue for this year. It expects to deploy between 1.3 gigawatts and 1.6 gigawatts this year and record $50 million to $100 million in GAAP restructuring charges this year.

Shares of SunPower slumped in after-hours trades, falling by as much as 4.83% to $6.90.