![]() ![]() It won't blast off anytime soon, but its respectable yield and low valuation could make it a great safe haven play in this volatile market. That slowdown was mainly caused by tough comparisons against its brisk recovery throughout fiscal 2023 instead of any near-term macro or micro challenges.Ĭisco pays a forward dividend yield of 2.7% and trades at just 14 times forward earnings. As a result, its revenue and adjusted EPS rose 11% and 16%, respectively, for the full year.įor fiscal 2024, Cisco expects its revenue to rise 0% to 2% as its adjusted earnings per share (EPS) rises 3% to 5%. Cisco's growth accelerated again as it met the market's pent-up demand for new networking hardware devices, and that recovery easily offset the sluggish sales of its cybersecurity and collaboration products. However, most of those headwinds dissipated in fiscal 2023. Higher logistics and component costs also squeezed its gross margins. Cisco SystemsĬisco suffered a slowdown throughout fiscal 2022 (which ended on July 30) as the supply chain constraints throttled its sales of switches, routers, and wireless hardware. With an enterprise value of $1.2 billion, Opera's stock trades at just 3 times this year's sales and 15 times its adjusted EBITDA - so it certainly looks like an undervalued income play right now. Opera's growth is cooling off amid the recent macro headwinds for the ad industry, yet it still generated enough cash to pay its first semi-annual dividend of $0.40 per ADS at the end of June - which gives it an impressive forward dividend yield of 5.4%. For the current year, it expects its revenue to rise 15% to 18% and for its adjusted EBITDA to grow 18% to 23%. It also turned profitable on a generally accepted accounting principles ( GAAP) basis. In 2022, Opera's revenue rose 32% as its adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA) surged 135%. It's also aggressively monetizing those MAUs with new search and advertising features, and it expects its recent rollout of Opera One - a new version of its browser with integrated AI features - to further boost its revenue per MAU. However, this oft-overlooked underdog still served 316 million monthly active users (MAUs) across its namesake news app and web, mobile, and gaming browsers at the end of the second quarter of 2023. ![]() Opera's web browser controls less than 3% of the global market according to StatCounter, putting it in fifth place behind Alphabet's Google Chrome (63%), Apple's Safari (21%), and Microsoft's Edge (5%), and Mozilla's Firefox (3%). Analysts expect its revenue to rise less than 1% this year as its adjusted EPS drops 6%, but its prospects could brighten as the macro situation improves and the smartphone market stabilizes. In other words, AT&T's massive forward dividend yield of 7.6% is still safe, and its low forward multiple of six should limit its downside potential in this challenging market. Furthermore, it reiterated its goal of generating $16 billion in free cash flow ( FCF) this year - which means it can easily cover its dividends, which consumed $10 billion of its FCF last year. ![]() It also continues to expand its fiber business to offset the declines of its non-fiber broadband businesses. ![]() That's a lot of bad news to process, but AT&T's mobility revenue and margins are still rising as it monetizes its subscribers more aggressively with higher-margin plans and international roaming charges. Lastly, its critics claimed it intentionally ignored the safety and environmental hazards of its lead-sheathed copper cables - and that it might need to spend billions of dollars to replace those legacy cables in the near future. Second, its business wireline segment continued to wither as the market's demand for its legacy voice and data services dried up. First, it only added 326,000 postpaid phone subscribers in the second quarter of 2023, which ended a 12-quarter streak of gaining at least 400,000 postpaid phone net adds. AT&T's stock price sank more than 20% this year for three reasons. ![]()
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