Cisco’s Q1 Earnings Easily Beat Analysts’ Cautious Outlook; Shares Rise (CSCO)

By Staff,

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Networking equipment maker Cisco Systems, Inc. ( CSCO ) late Wednesday posted much better-than-expected fiscal first quarter earnings, sending its shares soaring in aftermarket trading.

The San Jose, CA-based company reported fiscal first quarter net income of $1.8 billion, or 33 cents per share, compared with $1.9 billion, or 34 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 43 cents per share.

Revenue rose nearly 5% from last year to $11.26 billion.

On average, Wall Street analysts expected a smaller profit of 40 cents per share, on lower revenue of $11 billion.

For its current fiscal second quarter, Cisco projected adjusted earnings of 42 to 44 cents per share, on implied revenue of $11.13 billion to $11.2 billion. Analysts are looking for second quarter profits of 42 cents per share on $11.14 billion in revenue.

Cisco shares rose $1.07, or +6%, in premarket trading Thursday.

The Bottom Line
Shares of Cisco Systems ( CSCO ) have a 1.36% dividend yield, based on last night's closing stock price of $17.61. The stock has technical support in the $15-$16 price area. If the shares can firm up, we see overhead resistance around the $18.50-$20 price levels.

Cisco Systems, Inc. ( CSCO ) is not recommended at this time, holding a DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: CSCO

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