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

Markets

S&P 500 2,366.08 -3.67 -0.15%
DJIA 20,821.21 -16.23 -0.08%
NASDAQ 5,853.03 -8.87 -0.15%
DAX 11,831.84 9.17 0.08%
NIKKEI 225 19,118.99 11.52 0.06%
HANG SENG 23,740.73 -184.32 -0.77%
USD (per EUR) 1.06 0.00 0.16%
USD (per CHF) 1.00 0.00 -0.48%
JPY (per USD) 112.09 -0.65 -0.58%
GBP (per USD) 1.24 0.00 -0.03%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners