CISCO PROFIT BEATS ESTIMATES, STOCK SPIKES
Cisco Systems is currently trading at 54.87-higher by 4.63% as compared to the previous closing. In Pre-market trading on Thursday, the stock was traded higher by 3.36%. The stock has continued gaining after the opening bell.
Cisco Systems reported better-than-expected third quarter earnings after the market close on Wednesday. The company generated EPS (excluding certain items) of 78 cents for the third quarter. The EPS was above the market expectation of 77 cents. Cisco Systems brought in $12.96 billion in revenue for the third quarter. The revenue was above the consensus estimates of $12.89 billion.
The company expects 4.5% to 6.5% revenue growth in its fiscal fourth quarter. The revenue growth estimates were above the market expectation of 3.5%. Cisco forecasts EPS of 80 cents to 82 cents for the next quarter, while the consensus estimates for the EPS was 81 cents.
Stocks of the company rallied 15% since the beginning of the year.
On the technical front, the RSI is currently at 50.86% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger Bands but is heading upwards.
TRADE SUGGESTION-LIMIT BUY AT 54.62 TAKE PROFIT AT 55.22 STOP LOSS AT 54.30