Cisco (CSCO, $41.28) tops fiscal Q1 expectations
Cisco beat its first quarter earnings expectations, while also topping revenue estimates.
The IT and networking behemoth’s adjusted non-GAAP earnings for the three months ending in September fell -9.5% year-over-year to 76 cents per share, but was six cents ahead of the Street consensus forecast of 70 cents per share.
Revenues dropped -9.6% year-over-year to $11.9 billion, but beat the Street expectation of $11.85 billion. Products revenue of $8.58 billion were -13.3% lower from the year-ago quarter. But services revenues rose +2% year-over-year to $3.34 billion.
Looking ahead, Cisco expects full-year revenues to be -0.2% lower from last year. It forecasts non-GAAP earnings in the region of 74 cents to 76 cents per share, compared to the consensus forecast of 73 cents per share (Refinitiv poll). Cisco expects operating margins to be in the region of 32% to 33%.
Momentum Indicator for CSCO turns positive, indicating new upward trend
CSCO saw its Momentum Indicator move above the 0 level on April 18, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 84 similar instances where the indicator turned positive. In of the 84 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CSCO advanced for three days, in of 319 cases, the price rose further within the following month. The odds of a continued upward trend are .
CSCO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for CSCO turned negative on April 15, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
CSCO moved below its 50-day moving average on April 12, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CSCO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.378) is normal, around the industry mean (9.820). P/E Ratio (15.201) is within average values for comparable stocks, (88.290). Projected Growth (PEG Ratio) (3.538) is also within normal values, averaging (1.728). Dividend Yield (0.031) settles around the average of (0.042) among similar stocks. P/S Ratio (3.571) is also within normal values, averaging (23.653).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CSCO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CSCO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
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General Information
a manufacturer of Internet Protocol based networking products and services related to the communications and information technology industry
Industry TelecommunicationsEquipment