Cisco Systems, Inc. (NASDAQ: CSCO)
Cisco Systems, Inc. (CSCO), an Internet Protocol networking products and services company yesterday reported second quarter fiscal 2016 financial results. CSCO reported a profit of $0.57 per share which beat analyst expectations of $0.54 per share. CSCO reported revenues of $11.8 billion which also beat analyst expectations of $11.75 billion. CSCO also announced that they will be raising their quarterly dividend by 24% to $0.26 a share.
Cisco Systems, Inc. CEO’s Comments
“We delivered a strong Q2, and are managing the business extremely well in a challenging macro environment,” said Chuck Robbins, Cisco chief executive officer. “We’re managing the company on two fronts. We’re focused on continued strong execution in the near term while investing in the innovation to lead our customers into the future.” Market Wired
Cisco Systems, Inc CFO’s Comments
“We had another strong quarter, delivering both the top line and bottom line growth,” said Kelly Kramer, Cisco executive vice president and chief financial officer. “I’m happy with the progress we are making as we continue to shift our business model to more software, and recurring revenue. We are very confident in the strength of our business and future cash flows allowing the substantial increase of our dividend this quarter to $0.26. We remain committed to our shareholders in delivering profitable growth and returning a minimum of 50 percent of our free cash flow back annually.” Market Wired
CSCO Technical Analysis
CSCO gapped up in price yesterday to $24.10, up from the prior day’s close of $22.51, which is a 7% increase in price. Taking a look at the daily chart we can see that the last time CSCO traded above this price level was on January 14th when it traded at $24.66. Taking a closer look at the daily chart we can see that CSCO has been on an overall decline dating back to October 28th when it traded at $29.36. This gap up is a bounce off of the 52 week low price of $22.46. CSCO has a float of 5.07 billion shares and is trading right at the normal daily trading volume. CSCO did reach pre market highs of $24.14, but gave back $0.04 at the open. For trading purposes, my entry point would have been $24.20 looking for a run to $25. My stop loss would have been $24, fearing anything below that and the stock would start to fill in the gap up.
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP) based networking products and services related to the communications and information technology industry worldwide. It provides switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points, and servers; and next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice, and video applications. The company also offers service provider video infrastructure, including set-top boxes, cable/telecommunications access products, and cable modems; and video software and solutions. In addition, it provides collaboration products comprising unified communications products, conferencing products, telepresence systems, and enterprise mobile messaging products; data center products, such as blade, rack, and modular servers, fabric interconnects, software, and server access virtualization solutions; security products, including network and data center security, advanced threat protection, Web and email security, access and policy, unified threat management, and advisory, integration, and managed services; and other products, such as emerging technologies and other networking products. Further, the company offers wireless products consisting of wireless access points; network managed services; and standalone, switch-converged, and cloud managed solutions. Additionally, it provides technical support services and advanced services. The company serves businesses of various sizes, public institutions, governments, and communications service providers. Cisco Systems, Inc. sells its products directly, as well as through channel partners, such as systems integrators, service providers, other resellers, and distributors. The company was founded in 1984 and is headquartered in San Jose, California. Yahoo Finance