Cisco Systems, Inc. shares rose more than 6% in early trading on Thursday after the company reported strong first quarter financial results. Revenue may have fallen by 1.7% to $12.14 billion, but it beat consensus estimates by $30 million, and recurring revenue accounted for a larger portion of the total. Net income rose to $0.61 per share – beating consensus estimates by one cent per share – even though it fell lower year over year on a GAAP basis.
The company anticipates second quarter revenue growth of 1% to 3% and non-GAAP EPS of $0.58 to $0.60 per share, which is higher than analysts had been expecting in the months ahead. Cisco also anticipates gross margins of 62.5% to 63.5%, operating margins of 29.5% to 30.5% and a tax rate of 22% for the upcoming quarter. Investors responded favorably to this guidance by sending shares higher for the day. (See also: Cisco Systems Stock Poised to Network Higher.)
Cisco Systems shares moved to fresh highs following a bullish first quarter, but traders will be watching these levels. …read more
Read more here: Cisco Stock Soars After Q1 Beat and Solid Guidance