Yesterday Cisco Systems reported fiscal 4Q results. Bond overview
August 13, 2020
Yesterday Cisco Systems reported fiscal fourth-quarter results.
The revenue outperformed the forecast $12.2B ( $12.08B expected); adjusted EPS reached $0.80 ($0.74 expected).
However, the company sees 1Q revenue at -9% to -11% (-7.15% expected); 1Q adjusted EPS $0.69 to $0.71 ($0.76 expected).
As a result, 2.9% 4mar2021 bond suffered a significant G-spread rise (from 2.76 bp on August 10 to 37.59 bp on August 12), that signaled an increased risk for the bond.
Yet, longer-term notes were under a lower risk. For example, the G-spread of 2.5% 20sep2026 bond moved slightly from 21.69 bp to 21.36 bp (August 11-12). The G-spread of 5.9% 15feb2039 note was almost flat - 124.44 bp to 124.05 bp (August 11-12).
*The G-spread numbers correspond to the latest data of FINRA TRACE.
Company — Cisco Systems
Full nameCisco Systems, Inc.
IndustryInformation and High Technologies