Cisco Earnings Could Finally Bring The Stock Breakout

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

Markets

DJIA 25,090.48 -84.83 -0.34%
NASDAQ 7,746.38 -14.66 -0.19%
NIKKEI 225 22,709.69 -142.06 -0.62%
HANG SENG 30,309.49 -130.68 -0.43%
DAX 13,010.55 -96.55 -0.74%
USD (per EUR) 1.16 0.00 -0.08%
USD (per CHF) 1.00 0.00 0.01%
JPY (per USD) 110.49 -0.12 -0.11%
GBP (per USD) 1.33 0.00 -0.04%