Cisco Systems (NASDAQ:CSCO) Updates Q1 Earnings Guidance

Cisco Systems (NASDAQ:CSCO) updated its first quarter earnings guidance on Wednesday. The company provided EPS guidance of $0.86-0.88 for the period, compared to the consensus EPS estimate of $0.85. The company issued revenue guidance of $13.65-13.85 billion, compared to the consensus revenue estimate of $13.74 billion. Cisco Systems also updated its FY 2025 guidance to 3.520-3.580 EPS.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on CSCO shares. New Street Research upgraded Cisco Systems from a neutral rating to a buy rating and set a $57.00 price objective for the company in a research report on Thursday. Barclays cut their price target on shares of Cisco Systems from $50.00 to $49.00 and set an equal weight rating on the stock in a report on Thursday. Oppenheimer raised their price objective on shares of Cisco Systems from $54.00 to $58.00 and gave the stock an outperform rating in a research note on Thursday, May 16th. StockNews.com lowered Cisco Systems from a buy rating to a hold rating in a report on Thursday, May 23rd. Finally, JPMorgan Chase & Co. lifted their price target on Cisco Systems from $53.00 to $55.00 and gave the company a hold rating in a report on Thursday, August 8th. Despite investors’ hopes for a rebound in Networking Equipment demand to boost Cisco’s fourth-quarter 2024 performance, the anticipation is tempered by limited indications of a significant recovery in demand. One research analyst has rated the stock with a sell rating, fourteen have given a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the stock has a consensus rating of Hold and an average price target of $56.70.

Cisco Systems Stock Performance

Shares of CSCO opened at $49.46 on Friday. The company has a market capitalization of $199.27 billion, a PE ratio of 16.65, a price-to-earnings-growth ratio of 2.97 and a beta of 0.85. The company’s fifty day moving average price is $46.74 and its 200 day moving average price is $47.91. Cisco Systems has a one year low of $44.50 and a one year high of $58.19. The company has a debt-to-equity ratio of 0.44, a current ratio of 0.89 and a quick ratio of 0.82.

Cisco Systems (NASDAQ:CSCO) last released its earnings results on Wednesday, August 14th. The network equipment provider reported $0.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.85 by $0.02. The firm had revenue of $13.64 billion for the quarter, compared to analyst estimates of $13.53 billion. Cisco Systems had a return on equity of 30.82% and a net margin of 21.88%. The company’s revenue was down 10.3% on a year-over-year basis. During the same quarter last year, the firm posted $1.01 EPS. As a group, analysts expect that Cisco Systems will post 3.14 earnings per share for the current year.

Cisco Systems Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 23rd. Investors of record on Wednesday, October 2nd will be paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 3.23%. The ex-dividend date of this dividend is Wednesday, October 2nd. Cisco Systems’s payout ratio is presently 53.87%.

Insider Activity at Cisco Systems

In related news, CEO Charles Robbins sold 26,331 shares of the company’s stock in a transaction dated Wednesday, May 29th. The shares were sold at an average price of $46.10, for a total value of $1,213,859.10. Following the sale, the chief executive officer now owns 725,363 shares of the company’s stock, valued at $33,439,234.30. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other news, SVP Maria Victoria Wong sold 3,378 shares of the business’s stock in a transaction on Wednesday, May 29th. The stock was sold at an average price of $45.89, for a total transaction of $155,016.42. Following the completion of the sale, the senior vice president now owns 52,953 shares in the company, valued at $2,430,013.17. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Charles Robbins sold 26,331 shares of the company’s stock in a transaction on Wednesday, May 29th. The shares were sold at an average price of $46.10, for a total value of $1,213,859.10. Following the transaction, the chief executive officer now directly owns 725,363 shares in the company, valued at approximately $33,439,234.30. The disclosure for this sale can be found here. Insiders have sold 33,090 shares of company stock worth $1,522,231 over the last three months. Company insiders own 0.02% of the company’s stock.

About Cisco Systems

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.