Late Tuesday, networking equipment giant Cisco Systems, Inc. (CSCO) reported growth in earnings and revenue for the first quarter, beating estimates. The firm says growth for second quarter will be weak.
The San Jose, California-based company reported a rise in first quarter net income to $2.09 billion, or 39 cents per share, up from $1.78 billion, or 33 cents per share, in the first quarter of 2011. Excluding items, CSCO profit was $2.6 billion, or 48 cents per share. Analysts expected the company to earn 46 cents per share according to Thomson Reuters.
Revenue for Cisco rose +6% from Q1 of 2011 to $11.9 billion, compared with analyst estimates of $11.77 billion.
Looking at the present 2013 second quarter, the company expects adjusted earnings per share to stay in the range of 47 or 48 cents per share. It also sees revenue growth to be around 3.5% to 5.5%, compared with revenue growth of 11.6% in the second quarter of 2012.
Cisco shares were up $1.19, or +7.06%, in premarket trading on Wednesday.
The Bottom Line
Shares of Cisco Systems (CSCO) have a 3.32% dividend yield, based on last night’s closing stock price of $16.85. The stock has technical support in the $15-$16 price area. If the shares can firm up, we see overhead resistance around the $18-$19 price levels.
Cisco Systems, Inc. (CSCO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 0.0 out of 5 stars.