Cisco shoots to all-time high after saying it's set to grow revenue for the first time in 2 years
- Cisco reported a top-line beat in its first-quarter earnings results.
- For the first time in the last eight quarters, the company said it expects to increase revenue next quarter.
- Watch Cisco trade in real time.
Cisco hit an all-time high of $36.69 on Thursday after saying it expects to break its eight-quarter long decline in revenue next quarter.
The IT and networking company rose 6.60% after its first-quarter earnings report. Cisco reported adjusted earnings of $0.61 per share compared to Wall Streets estimates of $0.60 per share. The company reported revenues of $12.136 billion vs. estimates of $12.11 billion.
Revenue was down 2% compared from the year-ago period, but the company said it expects revenue to come in 1-3% higher in the second quarter compared to the same time last year. If the company succeeds, it will be the first revenue growth in two years.
"Cisco is executing according to plan and we are impressed by the security growth, recurring revenue growth, and the steady capital allocation program," Mitch Steves, an analyst at RBC Capital Markets, said in a note to clients.
Steves rates Cisco a buy and raised his price target to $4o, about 10% higher than the company's current price, after earnings.
George Notter, an analyst at Jefferies, is also bullish after earnings. "The IT/networking environment for Cisco is relatively strong right now - despite some specific slowness in Service Providers, Emerging markets, and Routing," Notter said in a note to clients.
Notter rates Cisco a buy with the same price target as Steves of $40.
Cisco is up 19.06% this year.
