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.
Momentum Indicator for CSCO turns positive, indicating new upward trend
CSCO saw its Momentum Indicator move above the 0 level on November 22, 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 81 similar instances where the indicator turned positive. In of the 81 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for CSCO just turned positive on November 27, 2024. Looking at past instances where CSCO's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CSCO advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 315 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 RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
CSCO broke above its upper Bollinger Band on November 06, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued 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.
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 (8.223). 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 (26.255).
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock slightly 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