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 2,270.30 -4.34 -0.19%
DJIA 19,843.38 -42.35 -0.21%
NASDAQ 5,547.02 -27.09 -0.49%
DAX 11,540.00 -14.71 -0.13%
HANG SENG 22,840.97 122.82 0.54%
NIKKEI 225 18,813.53 -281.71 -1.48%
USD (per EUR) 1.07 0.01 0.89%
USD (per CHF) 1.00 -0.01 -0.82%
JPY (per USD) 113.00 -1.15 -1.01%
GBP (per USD) 1.24 0.03 2.81%

From Our Partners