Why Cisco Systems Stock Is Climbing Higher

Cisco Systems Inc CSCO shares are moving higher Thursday after the company reported better-than-expected results and issued strong guidance. Several analysts also raised price targets on the stock following Cisco's quarterly results.

• Q2 Revenue: $13.6 billion beat estimates of $13.43 billion
• Q2 EPS: $0.88 beat estimates of $0.85

"With Cisco's strong Q2 performance, our fiscal 2023 is shaping up to be a great year. The modern, highly secure networks we are building serve as the backbone of our customers' technology strategy. This, combined with the success of our ongoing business transformation and operational discipline gives me confidence in our future," said Chuck Robbins, chair and CEO of Cisco.

Cisco sees fiscal third-quarter revenue growth of 11% to 13%. The company expects third-quarter adjusted earnings to be between 96 cents and 98 cents per share. 

Cisco expects full-year 2023 revenue growth to be in a range of 9% to 10.5%. The company sees full-year adjusted earnings between $3.73 and $3.78 per share versus estimates of $3.55 per share. Cisco also increased its quarterly dividend by 3% to 39 cents per share.

Analyst Assessment:

• Morgan Stanley maintained Cisco with an Equal-Weight and raised the price target from $52 to $55.
• Wells Fargo maintained Cisco with an Equal-Weight and raised the price target from $52 to $57.
• Rosenblatt maintained Cisco with a Neutral and raised the price target from $51 to $53.
• Credit Suisse maintained Cisco with an Outperform and raised the price target from $67 to $69.
• JPMorgan maintained Cisco with a Neutral and raised the price target from $54 to $55.

See Also: US Stocks' Resilience Faces Test As Traders Await Flurry Of Economic Data: Fed May 'Surprise To The Upside' On Rates Again In 2023, Says Analyst

CSCO Price Action: Cisco has a 52-week high of $57.69 and a 52-week low of $38.61.

The stock was up 3.05% at $49.93 at the time of writing, according to Benzinga Pro.

Photo: Thank You from Flickr.