Cisco Systems (NASDAQ:CSCO) Announces Earnings Results

Cisco Systems (NASDAQ:CSCOGet Rating) issued its earnings results on Wednesday. The network equipment provider reported $0.86 earnings per share for the quarter, topping analysts’ consensus estimates of $0.84 by $0.02, RTT News reports. Cisco Systems had a return on equity of 31.75% and a net margin of 22.00%. The business had revenue of $13.63 billion during the quarter, compared to analyst estimates of $13.29 billion. During the same quarter in the previous year, the firm earned $0.73 EPS. Cisco Systems’s revenue was up 5.7% on a year-over-year basis. Cisco Systems updated its Q2 guidance to $0.84-0.86 EPS and its FY23 guidance to $3.51-3.58 EPS.

Cisco Systems Stock Up 5.0 %

Shares of CSCO opened at $46.59 on Friday. The stock has a market capitalization of $191.43 billion, a price-to-earnings ratio of 16.82, a price-to-earnings-growth ratio of 2.20 and a beta of 1.00. Cisco Systems has a 1 year low of $38.60 and a 1 year high of $64.29. The business’s 50 day simple moving average is $42.91 and its 200-day simple moving average is $44.45. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.43 and a quick ratio of 1.33.

Cisco Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 26th. Investors of record on Wednesday, October 5th were issued a $0.38 dividend. The ex-dividend date was Tuesday, October 4th. This represents a $1.52 dividend on an annualized basis and a yield of 3.26%. Cisco Systems’s dividend payout ratio is presently 54.87%.

Insider Transactions at Cisco Systems

In other news, EVP Jeffery S. Sharritts sold 637 shares of the company’s stock in a transaction that occurred on Tuesday, September 13th. The stock was sold at an average price of $44.69, for a total transaction of $28,467.53. Following the sale, the executive vice president now directly owns 166,370 shares of the company’s stock, valued at approximately $7,435,075.30. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other news, EVP Jeffery S. Sharritts sold 637 shares of the company’s stock in a transaction that occurred on Tuesday, September 13th. The stock was sold at an average price of $44.69, for a total transaction of $28,467.53. Following the sale, the executive vice president now directly owns 166,370 shares of the company’s stock, valued at approximately $7,435,075.30. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Charles Robbins sold 12,716 shares of the stock in a transaction on Wednesday, August 24th. The shares were sold at an average price of $47.14, for a total value of $599,432.24. Following the sale, the chief executive officer now owns 631,374 shares in the company, valued at approximately $29,762,970.36. The disclosure for this sale can be found here. Insiders have sold 56,317 shares of company stock valued at $2,612,042 in the last ninety days. Corporate insiders own 0.02% of the company’s stock.

Institutional Trading of Cisco Systems

Several hedge funds and other institutional investors have recently bought and sold shares of CSCO. Charles Schwab Investment Advisory Inc. raised its holdings in Cisco Systems by 18.0% during the 1st quarter. Charles Schwab Investment Advisory Inc. now owns 4,105 shares of the network equipment provider’s stock valued at $229,000 after buying an additional 626 shares during the period. Fairview Capital Investment Management LLC grew its position in Cisco Systems by 32.6% in the 1st quarter. Fairview Capital Investment Management LLC now owns 5,316 shares of the network equipment provider’s stock valued at $296,000 after acquiring an additional 1,306 shares during the last quarter. Prelude Capital Management LLC grew its position in Cisco Systems by 158.0% in the 1st quarter. Prelude Capital Management LLC now owns 5,643 shares of the network equipment provider’s stock valued at $315,000 after acquiring an additional 15,373 shares during the last quarter. Wsfs Capital Management LLC grew its position in Cisco Systems by 4.3% in the 1st quarter. Wsfs Capital Management LLC now owns 7,447 shares of the network equipment provider’s stock valued at $415,000 after acquiring an additional 307 shares during the last quarter. Finally, First Western Trust Bank bought a new position in Cisco Systems in the 1st quarter valued at $428,000. Hedge funds and other institutional investors own 71.71% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on CSCO shares. UBS Group boosted their target price on Cisco Systems from $46.00 to $48.00 and gave the stock a “neutral” rating in a research report on Thursday, August 18th. StockNews.com assumed coverage on Cisco Systems in a research note on Wednesday, October 12th. They set a “buy” rating for the company. Piper Sandler boosted their price target on Cisco Systems from $43.00 to $47.00 and gave the company a “neutral” rating in a research note on Thursday, August 18th. Morgan Stanley boosted their price target on Cisco Systems from $46.00 to $48.00 and gave the company an “equal weight” rating in a research note on Thursday, August 18th. Finally, Citigroup boosted their price target on Cisco Systems from $40.00 to $44.00 and gave the company a “sell” rating in a research note on Thursday, August 18th. One analyst has rated the stock with a sell rating, nine have assigned a hold rating and twelve have assigned a buy rating to the company. According to MarketBeat, Cisco Systems currently has an average rating of “Moderate Buy” and an average price target of $53.63.

About Cisco Systems

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Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points that are standalone, controller appliance-based, switch-converged, and Meraki cloud-managed offerings; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.

Further Reading

Earnings History for Cisco Systems (NASDAQ:CSCO)

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