Cisco: beats forecasts; shares up
(CercleFinance.com) - Cisco posted a stronger-than-expected quarterly profit, which pleased investors, while the company from San Jose (California) is transitioning from network equipment to a software model, and accelerating the pace of its innovation.
The world's top vendor of routers and switches said net profit reached 2.8 billion dollars, or 63 cents a share, in the past quarter, compared to a 8.8 billion dollar loss, or 1.78 dollar a share, a year earlier.
Excluding extraordinary items, profit was 3.3 billion dollars compared to 3.1 billion dollars a year earlier, and higher than the average Wall Street forecast.
Revenue also surprised on the upside during its fiscal second quarter ended January, up 7% at 12.4 billion dollars.
Cisco also said its board of directors raised the quarterly dividend by 6% to 35 cents per share and authorized 15 billion dollars in additional share repurchases.
After the report, Credit Suisse raised its target price for the share from 44 dollars to 47 dollars, while maintaining a "neutral" rating on the share.
"We identify Cisco as the most dominant player across several networking equipment markets, but remains in transition as they continue to shift their business towards a more software/recurring revenue model," the broker said.
The market was more positive, though, with the Cisco shares up 4% at 49.4 dollars on the Dow Jones index on Thursday morning.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The world's top vendor of routers and switches said net profit reached 2.8 billion dollars, or 63 cents a share, in the past quarter, compared to a 8.8 billion dollar loss, or 1.78 dollar a share, a year earlier.
Excluding extraordinary items, profit was 3.3 billion dollars compared to 3.1 billion dollars a year earlier, and higher than the average Wall Street forecast.
Revenue also surprised on the upside during its fiscal second quarter ended January, up 7% at 12.4 billion dollars.
Cisco also said its board of directors raised the quarterly dividend by 6% to 35 cents per share and authorized 15 billion dollars in additional share repurchases.
After the report, Credit Suisse raised its target price for the share from 44 dollars to 47 dollars, while maintaining a "neutral" rating on the share.
"We identify Cisco as the most dominant player across several networking equipment markets, but remains in transition as they continue to shift their business towards a more software/recurring revenue model," the broker said.
The market was more positive, though, with the Cisco shares up 4% at 49.4 dollars on the Dow Jones index on Thursday morning.
Copyright (c) 2019 CercleFinance.com. All rights reserved.