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Cisco defies the corona crisis, Deutsche Wohnen remains confident

Network equipment supplier Cisco did better than expected in the past quarter thanks to increasing demand for video conferencing, even if the results were negative. Deutsche Wohnen, on the other hand, hardly feels the Corona crisis and can even increase its overall income.

First things first about Cisco and Deutsche Wohnen:

  • Cisco raises profit forecast
  • Deutsche Wohnen is sticking to its annual outlook

In the past quarter (1st fiscal quarter) Cisco had to accept losses in sales and profits, but was able to exceed analyst expectations. The adjusted operating profit was 76 cents per share (previous year: 84 cents), the analyst consensus at FactSet had expected 70 cents. Sales fell by almost ten percent, but were better than expected at $ 11.93 billion. Analyst estimates were $ 11.85 billion. One reason for the better than expected development is the high demand for online tools for video conferencing. While sales from the infrastructure and applications sectors fell significantly, sales from the security sector (including online tools) increased, thus limiting the decline.

Therefore, Cisco boss Chuck Robbins expressed himself more optimistically than three months ago when the previous quarter ended. Due to the recent positive development, the group has raised its expectations for the current quarter. Adjusted operating profit is now expected to be 74 to 76 cents per share, previously it was 73 cents. The quarterly figures reported after the hours of trading yesterday caused a price jump of around 8 percent, but the Cisco share is still in the red this year at around 20 percent.

Products on Cisco Systems

An increase of almost 18 percent made the shares of the real estate group Deutsche Wohnen become the best DAX® stocks this year. In November, the title also hit a new record high at EUR 46.97. One reason for the positive price development is likely to be that the corona crisis has hardly had any impact on business development. According to the company, only around one percent of tenants have reported for help related to the corona. This is reflected in the rental income, which increased by almost two percent in the first nine months of the year.

The operating profit (funds of operations) fell slightly, however, by a little more than one percent, because the interest expenses increased. Against this background, nothing has changed in the Group’s forecast: In the current financial year, Deutsche Wohnen expects an operating profit at roughly the same level as the previous year.

Products on Deutsche Wohnen

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Source: HSBC

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