What Analysts Are Saying About Cisco After Earnings

Cisco Systems Inc. (NASDAQ: CSCO | CSCO Price Prediction) released its most recent quarterly results after the markets closed on Wednesday. Overall, the initial reaction from investors was positive, although analysts seemed to be dragging their feet on this one.

24/7 Wall St. has included some highlights from the report, as well as what analysts are saying about the networking giant after the fact.

Cisco posted $0.73 in earnings per share (EPS) and $12.4 billion in revenue. Consensus estimates from Thomson Reuters had called for $0.72 in EPS and revenue of $12.41 billion. In the same period of last year, Cisco said it had EPS of $0.0.63 on $11.69 billion in revenue.

During the most recent quarter, total revenue increased 7% year over year, with product revenue up 9% and service revenue up 1%. Revenue by geographic segment: Americas up 7%, EMEA up 8% and APJC up 5%. Product revenue performance was generally broad-based, with growth in Applications up 24%, Security up 18% and Infrastructure Platforms up 6%.

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Deferred revenue totaled $17.3 billion, down 8% in total, with deferred product revenue down 23%. Deferred service revenue was up 3%.

Looking ahead to the fiscal second quarter, the company expects to see EPS in the range of $0.76 to $0.78 and revenue growing between 4% and 6% year over year. Consensus estimates call for $0.76 in EPS and $12.84 billion in revenue.

Here’s what analysts had to say:

• MKM Partners reiterated a Neutral rating with a $54 price target.
• Credit Suisse reiterated a Neutral rating and raised its target to $47 from $44.
• KeyCorp reiterated it as Overweight and raised its target to $55 from $53.
• Merrill Lynch reiterated a Buy rating with a $56 price objective.
• Jefferies reiterated a Buy rating with a $55 target price.
• Citigroup reiterated a Buy rating and raised its target to $56 from $52.

Shares of Cisco were last seen up about 1.5% at $49.12 on Friday, in a 52-week range of $40.19 to $49.68. The consensus price target is $52.64.

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