🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Cisco shares down despite upbeat guidance, better-than-expected Q1 results

Published 13/11/2024, 21:38
© Reuters.
CSCO
-

Investing.com -- Cisco issued upbeat second-quarter guidance and raised its annual outlook following fiscal first-quarter results that topped Wall Street estimates.

Still, Cisco Systems Inc (NASDAQ:CSCO) fell 4% in premarket trading Thursday after the report.

Cisco announced Q1 adjusted EPS of $0.91 on revenue of $13.8 billion. Analysts polled by Investing.com anticipated EPS of $0.87 on revenue of $13.78B.

"Cisco is off to a strong start to fiscal 2025," said Chuck Robbins, chair and CEO of Cisco. "Our customers are investing in critical infrastructure to prepare for AI, and with the breadth of our portfolio, we are uniquely positioned to capitalize on this opportunity."

Looking to fiscal Q2, Cisco projects EPS between $0.89 and $0.91, surpassing the consensus estimate of $0.87. The company expects Q2 revenue to range from $13.75 billion to $13.95 billion, also above the consensus forecast of $13.73 billion.

The company sees 2025 full-year adjusted EPS of $3.60 to $3.66 on revenue in a range of $55.3B to $56.3B, compared with its earlier forecasts of between $3.52 and $3.58 for EPS and $55.0 billion to $56.2 billion for revenue. Analyst estimates stood at $3.58 and $55.9 billion, respectively.

Bank of America (NYSE:BAC) analysts said the revenue guidance hike was mainly attributable to better-than-expected Q1 results and Q2 outlook, "and we see room for growth acceleration in 2H25 on the back of the strong Cloud/AI and Security order growth."

The bank raised its price target on CSCO shares from $60 to $72.

Jefferies analysts also raised their target price on Cisco stock from $53 to $66, citing "solid results and guidance bolstered by depleted customer inventory and positive AI commentary."

"We still think the risk/reward in the shares is tilted positively," they noted.

Yasin Ebrahim contributed to this report.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.