Cisco (CSCO, $51.04) crushes fiscal Q4 earnings expectations
Cisco posted fiscal second-quarter , adjusted earnings of 88 cents per share, topping analysts’ expectations of vs. 86 cents per share (based on Refinitiv poll).
Revenue climbed +7% from the year-ago quarter to $13.59 billion, beating the $13.43 billion expected by analysts ( based on Refinitiv poll).
Revenue from Cisco’s largest business segment, Secure, Agile Networks, grew +14% year-over-year to $6.75 billion, exceeding the $6.52 billion consensus (StreetAccount poll). The Internet for the Future unit, which includes routed optical networking hardware, slipped -1% to $1.31 billion, vs. $1.32 billion StreetAccount consensus. Revenue from Cisco’s Collaboration division containing Webex plunged by -10% to $958 million, below StreetAccount’s $1.06 billion consensus.
For fiscal third-quarter, Cisco expects adjusted earnings of 96 cents to 98 cents per share, vs. analysts’ forecast of 89 cents . It projects +11% to +13% revenue growth, vs analysts’ implied growth forecast of almost +6%
For the 2023 fiscal year, Cisco boosted its forecast to $3.73 to $3.78 in adjusted earnings per share and 9% to 10.5% revenue growth. Both are well ahead of analysts’ estimates.
CSCO in +2.27% Uptrend, advancing for three consecutive days on December 24, 2024
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where CSCO advanced for three days, in of 329 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 23, 2024. You may want to consider a long position or call options on CSCO as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. 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.
The Aroon Indicator entered an Uptrend today. In of 310 cases where CSCO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for CSCO moved out of overbought territory on December 09, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Moving Average Convergence Divergence Histogram (MACD) for CSCO turned negative on December 09, 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 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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 (8.299). P/E Ratio (15.201) is within average values for comparable stocks, (91.676). Projected Growth (PEG Ratio) (3.538) is also within normal values, averaging (1.815). 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 (26.790).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
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 SMR rating for this company is (best 1 - 100 worst), indicating 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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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