Cisco’s Earnings Continue To Rise — With Good Reason

Cisco shares rose 6.7% today, up more than 23% over the past 12 months, and beating both revenue and earnings estimates for their FY 2019 3rd quarter. That brings the technology giant a market cap of more than $246 billion, with a $15 billion of which comes in this quarter alone. Read the full story at MarketWatch.

Cisco’s Earnings Continue to Rise

Analyst Take: Cisco continues to show its robust nature as their stock is now up more than 23 percent from 12 months ago. I noted the fact that the company beat the revenue and earnings per share estimates above. The company also showed revenue growth year over year by about 4 percent.

On yesterday’s earnings call, Cisco also provided a number of updates on the company’s plans for handling the newly imposed tariffs on China. They stated that the company is prepared to deal with those increases and had already baked those into the future numbers.

Speaking of which, perhaps the most encouraging thing from the earnings call was when CEO and Chairman Chuck Robbins provided the company’s forward looking guidance for the 4th quarter, expecting growth of 4.5-6.5 percent, outperforming the current quarter.

Cisco is betting on significant growth in the wake of 5G and the required infrastructure to support the deployment of the next generation of communication technologies. Certain equities analysts are still somewhat skeptical about the company due to decelerating orders; however. I  tend to think the company’s ability to consistently execute quarter over quarter, makes them a good bet to continue to outperform. This is especially the case if they expect to grow at such a rate, even as the Chinese trade conflicts continue to escalate.

Bottom line, Cisco’s broad portfolio, loyal customer base and sound executive leadership continue to deliver results to the street. I expect more of the same over the next 4 quarters.

Futurum Research provides industry research and analysis. These columns are for educational purposes only and should not be considered in any way investment advice. 

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Daniel Newman

Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. From Big Data to IoT to Cloud Computing, Newman makes the connections between business, people and tech that are required for companies to benefit most from their technology projects, which leads to his ideas regularly being cited by CNBC, Barrons, Business Insider and hundreds of other sites across the world. A 7x Best-Selling Author including his most recent “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor. MBA and Graduate Adjunct Professor, Daniel Newman is a Chicago Native and his speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
Daniel Newman