Cisco Systems Surges Following Strong Q4

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Cisco Systems (NASDAQ: CSCO)

After the market closed on Wednesday, Cisco Systems announced fourth quarter earnings that topped analyst expectations and sent shares surging higher.

The company released adjusted earnings of 70 cents a share on $12.84 billion in revenue compared to $12.13 billion for the same period last year. Analyst were targeting 69 cents earnings per share on $12.77 billion in revenue.

Cisco pretty much beat on all aspects in their fourth quarter earnings and could be a solid candidate to finish the remainder of the year strong so make sure to keep this stock on your radar!

Technicals Breakdown

Shares of $CSCO skyrocketed over 6% and are looking to gap up in the $46.50 range after closing Wednesday at $43.86. You can see int he 15 minute chart below that prices have consolidated near highs and have been holding $46.50, which now will be a premarket support level we will want to watch.

Cisco Systems Stock Chart

From a trading standpoint we have look at this as a long for two reasons. It shot higher on volume and has stabilized near highs in the premarket. There has been little to no selling pressure and it’s looking like it will open up over a significant pivot level at $46 as you can see in the daily chart below.

Cisco Systems Stock Chart

This tells me buyers are in control. However, with a big push up like this we will likely see selling pressure at the open as traders look to book profits, but we will want this $46 level to hold to confirm our long hypothesis.

With a dip at the open we can look for long entries but will want to be patient and wait for price action to confirm. If it doesn’t hold, then we have a big window down to the $45 range.

CEO Comments

“We had a very strong finish to a great year and generated our highest quarterly revenue of $12.8 billion,” said Chuck Robbins, Chairman and CEO of Cisco. “Our results demonstrate a combination of strong customer adoption of our latest innovations, the ongoing value customers see in our software and subscription offerings, and excellent execution across our customer segments and geographies. Ourstrategy is working and we believe that are well-positioned to capture growth across our portfolio with our pipeline of innovation.”

Company Profile

Cisco Systems, Inc. designs, manufactures and sells Internet Protocol based networking products and services related to the communications and information technology industry.

Its product offerings comprises of the following categories: Switches, Routers, Wireless, Network Management Interfaces and Modules, Optical Networking, Access Points, Outdoor and Industrial Access Points, Next-Generation Firewalls, Advanced Malware Protection, VPN Security Clients, Email and Web Security.

The company was founded by Sandra Lerner and Leonard Bosack on December 10, 1984 and is headquartered in San Jose, CA. –MarketWatch

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