Cisco’s (CSCO) shares have declined by nearly 4% in price since the company reported its fiscal first-quarter results on November 17 with weaker guidance. So, the question is, is it wise to bet on the stock now on the back of the company’s consistent product and services innovations? Let’s find out.Cisco Systems, Inc. (NASDAQ:CSCO) in San Jose, Calif., is a well-known technology company that designs, manufactures, and sells internet protocol-based networking and other products related to the communications and information technology industry. The company’s total revenue increased 8.1% year-over-year to $12.90 billion for its fiscal first quarter, ended October 30, 2021. However, its revenue missed the consensus estimate marginally. While its net income increased 37.1% year-over-year to $2.98 billion, its EPS came in at $0.70, up 37.3% year-over-year.
CSCO’s shares have declined 3.8% since the results were reported on November 17, to close yesterday’s trading session at $55.30. This is primarily because due to the company's tepid guidance provided by the company. CSCO expects $0.64 - $0.68 per share in profit, or $0.80 - $0.82 on an adjusted basis, for its fiscal second quarter.
Nevertheless, hedge funds have grown more bullish on the stock. Also, consistent improvements in the Internet of Things (IoT) and 5G are expected to boost CSCO’s growth prospects.