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Cisco Systems, Inc Stock Shares Spike Up On Impressive Earnings Numbers

Published 05/19/2016, 09:36 AM
Updated 03/09/2019, 08:30 AM

Cisco Systems (NASDAQ:CSCO),

Cisco Systems, Inc. (CSCO), a global networking communications and information technology company yesterday reported their third quarter fiscal year 2016 financial results. Cisco reported third quarter earnings of $0.57 per share which beat analyst expectations of $0.55 per share. Cisco reported third quarter revenues fell 1.1% year over year to $12 billion which beat analyst expectations of $11.5 billion.

Cisco Systems, Inc. CEO and CFO Comments

“We delivered a strong Q3, executing well despite the challenging environment,” said Chuck Robbins, Cisco chief executive officer. “I’m pleased with our performance today as well as the progress we’re making in transitioning our business to a more software and subscription focus, which we’ll continue to apply across our entire portfolio.”

“Once again we delivered a solid quarter in Q3, with 3% top line growth, and even faster non-GAAP EPS growth and strong margins,” said Kelly Kramer, Cisco executive vice president and chief financial officer. “We executed well on our financial strategy, allowing us to invest in our business model transition to software and recurring revenues so that our customers are able to consume Cisco technology in the way that is best for their business.” Market Wired

CSCO Technical Analysis

Cisco Systems Technical Analysis

CSCO opened trading yesterday at $26.56 which was down from the previous days trading of $26.65. CSCO closed trading yesterday at $26.72 and spiked up after market to $28.21, equivalent to a 6% increase from the closing price. Taking a look at the daily chart we can see the last time CSCO traded above this price level was on May 16th when it traded at $26.97. Taking a closer look at the daily chart we can see that CSCO has been on a recent downtrend dating back to April 27th when it traded at $28.64. CSCO has a float of 5.03 billion shares and traded almost 1.5 times the normal daily trading volume on Wednesday. For trading purposes, I would like to see CSCO open trading on Thursday above $27.75 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.

Company Profile

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP) based networking and other products related to the communications and information technology industry worldwide. It provides switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points, and servers; and next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice, and video applications. The company also offers service provider video infrastructure, including set-top boxes, cable/telecommunications access products, and cable modems; and video software and solutions.

In addition, it provides collaboration products comprising unified communications products, conferencing products, telepresence systems, and enterprise mobile messaging products; data center products, such as blade and rack servers, modular servers, fabric interconnects, software, and server access virtualization solutions; security products, including network and data center security, advanced threat protection, Web and email security, access and policy, unified threat management, and advisory, integration, and managed services; and other products, such as emerging technologies and other networking products. Further, the company offers wireless products consisting of wireless access points; network managed services; and standalone, switch-converged, and cloud managed solutions.

Additionally, it provides technical support services and advanced services. The company serves businesses of various sizes, public institutions, governments, and communications service providers. Cisco Systems, Inc. sells its products directly, as well as through channel partners, such as systems integrators, service providers, other resellers, and distributors. The company was founded in 1984 and is headquartered in San Jose, California.”

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