Cisco Earnings Overcome Investor Concerns for Network Stocks
Silicon Valley seems to be getting healthier and healthier. Cisco is usually a harbinger of things to come – when their customers expect growth, they buy Cisco equipment and when they don’t expect growth, Cisco equipment is among the first things cut from the budget.
If I am correct, Cisco beating expectations should mean good things coming for the rest of the tech sector – which should mean good things for the general economy.
Cisco Systems Inc. (NASDAQ: CSCO) released its fiscal third quarter corporate earnings after the close of trading on Wednesday. The company posted adjusted earnings per share (EPS) of $0.51 on revenues of $12.2 billion.
In the same period a year ago, Cisco reported EPS of $0.48 and $11.59 billion in revenues. Thomson Reuters has estimates of $0.49 earnings per share (EPS) and $12.18 billion in revenue. The analyst community remains somewhat muted on Cisco, although the consensus price target is up at $23.53, versus a recent pre-earnings price of $21.21 on the stock. Cisco’s 52-week trading range is $14.96 to $21.98.
Before today’s earnings announcement, Cisco’s stock traded within 3% of its 52-week high, but that mark was broached shortly after the results came out. If it holds through the open of regular trading tomorrow, Cisco will set a new high above $22 a share.
Cisco’s shares have faced…
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