
The season winds to a close
Two major Dow Jones Industrial Average elements report revenues this week as the season winds to a close: the world's largest entertainment company, Disney , and the networking giant Cisco . Both companies have seen their share prices climb this year, however Disney has stolen the show recently. Shareholders will be looking for signs that each company can maintain its momentum for the rest of 2012.
As of now, analysts are expecting revenues of $0.55 per share on $9.56 billion in revenue for the second quarter. Don't let the numbers distract you from the key plot points, but. Disney's recent film, John Carter, was an expensive, abysmal failure. The studio expected to lose $80 million to $120 million due to a writedown related to the film. Investors will get a better picture of the effect on the bottom line and find out whether the historic debut for The Avengers can more than offset the John Carter debacle.
CiscoCisco heads into Wednesday's revenues call with slightly less enthusiasm than Disney, primarily because the networking giant's shares fell 4.3% last week. This was the third-largest drop of the 30 Dow elements, nearly as severe as the 5.9% fall experienced by Caterpillar and the 6.3% decline for Bank of America . The shares of those two companies, which are largely tied to broader economic trends, were hurt by a mediocre jobs report on Friday. Cisco, conversely, is less closely correlated with the economic cycles, nevertheless is after all dependent on business spending and government contracts.
Analysts are expecting $0.41 per share from Cisco, which would be up 10.8% from a year ago. On the top line, analysts are expecting revenue of $11.58 billion, reflecting 6.6% growth from the same quarter last year. Cisco continues to pursue growth through tack-on acquisitions, however also sees opportunities in the new era of cloud computing.
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