Cisco Systems Stock Is Moving Higher: What's Going On?

Cisco Systems Inc CSCO shares are trading higher Thursday after the company reported better-than-expected financial results. Several analysts lifted price targets on the stock following the print. 

• Q4 Revenue: $15.2 billion beat estimates of $15.05 billion
• Q4 EPS: $1.14 beat estimates of $1.06 

Total revenues were up 16% year-over-year, total annualized recurring revenue was up 5% and remaining performance obligations grew 11%. Earnings per share increased 43% year-over-year on a GAAP basis and jumped 37% on an adjusted basis. 

Cisco declared a quarterly dividend of 39 cents per share to be paid on Oct. 25 to shareholders of record as of Oct. 4. 

"We are seeing solid customer demand, gaining market share, and innovating in key areas like AI, security, and cloud. This momentum gives us confidence in our ability to capture the many opportunities ahead," said Chuck Robbins, chair and CEO of Cisco.

Outlook: Cisco said it expects first-quarter revenue to be between $14.5 billion and $14.7 billion versus estimates of $14.62 billion. The company anticipates earnings of $1.02 to $1.04 per share versus estimates of 99 cents per share.

Full-year 2024 revenue is expected to be between $57 billion and $58.2 billion versus estimates of $58.38 billion. Full-year earnings are expected to be in the range of $4.01 to $4.08 per share versus estimates of $4.04 per share.

See Also: Walmart, Cisco And 3 Stocks To Watch Thursday

Analyst Changes: 

• Barclays analyst Tim Long maintained Cisco with an Equal-Weight rating and raised the price target from $51 to $53.
• Raymond James analyst Simon Leopold maintained Cisco with an Outperform and raised the price target from $64 to $65.
• Rosenblatt analyst Mike Genovese maintained Cisco with a Neutral and raised the price target from $52 to $59.
• Oppenheimer analyst Ittai Kidron reiterated Cisco with an Outperform and maintained a $58 price target.
• UBS analyst David Vogt maintained Cisco with a Neutral and raised the price target from $51 to $55.
• Morgan Stanley analyst Meta Marshall maintained Cisco with an Equal-Weight and raised the price target from $55 to $56.

CSCO Price Action: Cisco shares were up 2.08% at $54.06 at the time of writing, according to Benzinga Pro.

Photo: DennisM2 from Flickr.