Cisco Systems' (CSCO) Underperform Rating Reiterated at Credit Suisse Group

CSCO image

(NASDAQ:CSCO) reported its EPS in the last quarter as $0.61/Share beating the analyst estimate of $0.59/Share by the difference of $0.02. It opened the session with a $15.92 price tag, later ranging from $15.85 to $16.6, the range at which the stock has traded at throughout the day. According to these analysts, the Low Revenue Estimate for Cisco Systems, 11.41 Billion and the High Revenue Estimate is 11.97 Billion.

Excluding the divestiture of the SP Video CPE business, revenue declined by 2% year over year. For the quarter ending Jan-17, 27 analysts have a mean sales target of 11,549.70 million whilst for the year ending Jul-17, 31 analysts have a mean target of 48,293.00 million. Thus showing a Surprise of 3.6 percent.

The company reported that for the quarter, product revenue was down 4% however service revenue was up 5%. This represents a $1.16 dividend on an annualized basis and a yield of 3.53%. The Moving Average SMA50 is 5.5% while SMA200 is 7.88%. The company has grown 7.49% in past 3 months and in the last five trades has moved up 1.9%.

Operating expenses as percentage of revenues increased 40 bps to 35.6% primarily owing to increase in most of the expense line items. Huge spending on marketing and sales cost a lot. The share price is now 6 percent versus its SMA20, 7.91 percent versus its SMA50, and 10.56 percent versus its SMA200. Private Bank & Trust Co. increased its stake in Cisco Systems by 43.7% in the second quarter. The total cash and cash equivalents and investments available in the United States at the end of the fiscal second quarter were $9.6 billion.

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 26th.

Cisco Systems, Inc. (NASDAQ:CSCO) now has a consensus Price Target of $33.26. Following a recent rally, Cisco's share price is now trading around the highest level since 2007. The remaining authorized amount under this program is approximately $13.4 billion.

The Wall Street consensus forecasts call for earnings that are smaller than a year ago from the networking products and services giant, which during the most recent quarter bought AppDynamics before its IPO. Shares had gained over 25 percent in the past year.

We believe that Cisco's expanding footprint in the rapidly growing security and data center market are promising. The Company delivers its technology and services to its customers as solutions for their priorities, including cloud, video, mobility, security, collaboration and analytics. I have no business relationship with any company whose stock is mentioned in this article.

Moreover, continued share buyback and dividend hikes are positive in our view. William Blair initiated coverage on Cisco Systems in a research note on Tuesday, January 17th. We believe that third-quarter revenue guidance continues to reflect these growing headwinds. The current value of the RSI is 73.17 that is in overbought range. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon.

You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .

Want the latest recommendations from Zacks Investment Research?

Related news:

Hot News

isis-killer-beheading-video-story-top UN Syria talks to follow agenda set by UN resolution: envoy
Feb 17, 2017 - 00:38
Aidarbek Tumatov said that in the framework of the round table parties will give their speeches and have pleadings. The diplomat did not rule out the possibility of direct negotiations between the opposition and Damascus.

isis-killer-beheading-video-story-top South Korea blames the North for killing of Kim Jong-un's brother
Feb 16, 2017 - 01:12
After the Disneyland incident, much of the rest of Kim Jong Nam's life was spent overseas, first in China and then in Macau. Malaysian police detained a woman holding Vietnamese travel papers, and were looking for several other foreign suspects.

isis-killer-beheading-video-story-top Authorities play banned version of German national anthem during Fed Cup tie
Feb 16, 2017 - 01:09
The United States is facing Germany in quarterfinal play and now holds a 1-0 lead in the best-of-five series. It has apologised, tweeting that the mistake would not occur again.

isis-killer-beheading-video-story-top Trump government detained 680 immigrants in raids last week
Feb 16, 2017 - 01:08
The same was the case in NY and San Antonio, with 61 of the 92 individuals arrested having prior criminal convictions. We believe that those who are in our country illegally and have criminal convictions should be expelled.

isis-killer-beheading-video-story-top Bridge Report Finds Nearly 56000 Bridges Still Need Attention
Feb 16, 2017 - 01:07
The report adds more than 1,300 bridges are posted for load, which means vehicles of a certain size or weight are restricted. The part of I-95 that covers Olde Richmond and Fishtown was the most traveled in the state, with 208,978 daily crossings.

isis-killer-beheading-video-story-top Oroville Dam Spillway: What you need to know this Monday
Feb 16, 2017 - 01:06
But they cautioned that the situation remained unpredictable. "Things can fail whether it's levees or dams or bridges", he said. As of noon Tuesday, the lake had dropped 15 feet to 887.94 feet elevation since it peaked Sunday above capacity at 902.1 feet.

isis-killer-beheading-video-story-top Ben Affleck Reportedly Wants Out of Solo Batman Film
Feb 16, 2017 - 01:06
If Affleck can't get out of his contract, the solo Batman film will be his last time playing the Caped Crusader. Wow! He must really not like the direction the cinematic universe is going if he wants out that badly.

isis-killer-beheading-video-story-top USA government seeks $100m from Armstrong
Feb 16, 2017 - 01:06
A United States government lawsuit seeking $100m (£80m) in damages from Lance Armstrong has been given the go-ahead. But the swift dumping of him by others around that time showed his endorsement had no value, the government argued.

isis-killer-beheading-video-story-top Champions League: Bayern thrash Arsenal 5-1, Madrid defeat Napoli
Feb 16, 2017 - 01:05
Arsenal has lost in the last 16 in each of the last six seasons with Bayern responsible for their 2013 and 2014 exits. Lewandowski acknowledged the importance of the result heading into the upcoming match with Arsene Wenger's men.

isis-killer-beheading-video-story-top Future to Release New Self-Titled Album Friday
Feb 16, 2017 - 01:05
But you can listen to his team-up with 2004's sixth-hottest pop band right now, with Maroon 5's new song "Cold" releasing today. However, the expected release date is sure to kick off a sensational weekend for fans when it drops on Friday (Feb. 17).

isis-killer-beheading-video-story-top Toronto Raptors, Orlando Magic Agree to a Serge Ibaka Trade
Feb 15, 2017 - 00:54
Ibaka addresses their shortcomings at power forward that have been present since Chris Bosh 's departure. Ibaka can fill the void left by Bismack Biyombo who also signed with Orlando last summer.

isis-killer-beheading-video-story-top Teva Pharma Q4 Profit Beats Estimates; Reaffirms 2017 Non-GAAP Guidance
Feb 15, 2017 - 00:50
Teva Pharmaceutical Industries Limited presently has a consensus rating of "Buy" and an average target price of $53.73. Teva reiterated its 2017 prediction of EPS in the range of $4.90 - $5.30 on $23.8 billion - $24.5 billion revenue.

isis-killer-beheading-video-story-top Verizon Joins the Unlimited Data War of 2017
Feb 14, 2017 - 00:47
Pricing for Verizon's unlimited data plan is reasonable, starting at $80 per month, including unlimited talk and text. It has been trying to push longtime customers off its old unlimited plans, which it killed in 2012, with rate hikes.

isis-killer-beheading-video-story-top Germany to elect new president, Steinmeier as frontrunner
Feb 14, 2017 - 00:44
The social-democrat will on 18 March succeed President Joachim Gauck, who for health reasons did not stand for re-election. Steinmeier's election to a five-year term came as no surprise.

isis-killer-beheading-video-story-top S.Korean prosecutors to summon Samsung heir over bribery charges
Feb 14, 2017 - 00:43
South Korean prosecutors interrogated Samsung's de facto chief executive Lee Jae-yong for the second time on Monday. Lee was first brought in for questioning a month ago, when the team grilled him for 22 hours straight.