Cisco Earnings Could Finally Bring The Stock Breakout

Before you go, we thought you'd like these...
Before you go close icon

Cisco logoCisco Systems Inc. (NASDAQ: CSCO) may have had trouble over the last couple of years in growing its share price, but now hours ahead of earnings the stock is about 1.5% or so within a 52-week high. The Thomson Reuters consensus for today is $0.48 EPS and $12.06 billion in revenue. That would be up 1-cent from a year ago on earnings, and sales growth would be about 4.7%.

Cisco's share price peak has been $21.34 and that was just on this last Monday. Cisco shares have just not been able to hold up above $20.00 since May 2012 even as it has raised its common dividend. You have to go back to October of 2010 before the early 2012 move to above $20.

Cisco has since completed its restructuring for the most part. The company has retired more shares than most technology companies would ever dream of and its market cap is roughly $111 billion now that shares back above $21.00.

We would caution that Wall Street's consensus analyst price target is up at $22.82 according to Thomson Reuters. The technology and communications equipment giant has also supposedly been gaining market share.

Cisco's cash and cash equivalents and investments were $45.0 billion at the end of the first quarter of fiscal 2013 reported in November of 2012. We would note that Cisco's last earnings report also showed that some $5.6 billion is remaining under its share buyback plan. It said last quarter, "Cisco repurchased 15 million shares of common stock under the stock repurchase program at an average price of $16.44 per share for an aggregate purchase price of $253 million. As of October 27, 2012, Cisco had repurchased and retired 3.8 billion shares of Cisco common stock at an average price of $20.34 per share for an aggregate purchase price of approximately $76.4 billion since the inception of the stock repurchase program."

Filed under: 24/7 Wall St. Wire, Earnings, Technology, Technology Companies Tagged: CSCO, featured
Read Full Story


S&P 500 2,253.06 6.87 0.31%
DJIA 19,681.44 66.63 0.34%
NASDAQ 5,438.56 21.21 0.39%
DAX 11,203.63 24.21 0.22%
HANG SENG 22,760.98 -100.86 -0.44%
NIKKEI 225 18,996.37 230.90 1.23%
USD (per EUR) 1.05 -0.01 -0.75%
USD (per CHF) 1.02 0.00 0.27%
JPY (per USD) 115.18 1.11 0.98%
GBP (per USD) 1.26 0.00 0.00%

From Our Partners