Cisco Systems (CSCO) reports quarterly results after the bell tonight. The Dow (^DJI) component has had a decent run over the last year, up 23%, but investors are to be forgiven if that isn't much solace.
Analysts are looking for 51 cents on about 5% growth, but I'll be focused on more qualitative issues. Specifically: In this age of investor activism it's odd that long-time Cisco boss John Chambers has been immune to criticism.
This stock peaked at over $80 a share in 2000. While it seems unsporting to hold the Internet bubble against Chambers, a look at this stock over the last decade compared to the S&P 500 reveals just 4.5% annualized growth over that time including reinvested dividends. The S&P has averaged 7.5% over that same time frame. That doesn't sound like a huge difference but thanks to the magic of compounding it adds up. From 2005 to now, the broader market has just about doubled the total returns seen by Cisco investors.
Not that Cisco has been sitting on its hands. They've bought camera companies, they were early on virtual conferencing and they probably made your cable box. It hasn't mattered. They just haven't been able to get consistent growth out of these initiatives.
Get the Latest Market Data and News with the Yahoo Finance App
Perhaps craziest of all: Cisco has been buying its own shares at an astonishing clip. The company has spent some $90 billion repurchasing 4.3 billion shares and EPS is still sluggish. I'm not sure what the answer is but let's put it this way: Steve Ballmer and plenty of other CEOs have been fired for less.
More from Yahoo Finance
Apple's encore (PS-- beware, Tesla)
Help wanted: Humans need not apply
