Cisco Systems (CSCO: NSD) surprised on the upside with its Q2 fiscal 2024 earnings, exceeding analyst expectations for both revenue and earnings per share (EPS). However, despite the positive results, the stock took a nosedive in after-hours trading, plummeting over 5%.
Key Highlights from Cisco’s Q2 Report:
Below are the key insights from Cisco Q2 earnings report:
- Revenue: $14.2 billion, exceeding analyst expectations of $14.08 billion.
- EPS: $0.88, surpassing estimates of $0.86.
- Year-over-year revenue growth: 4%.
- Year-over-year EPS growth: 6%.
Stock Target Advisor’s Analysis on Cisco:
Stock Target Advisor maintains a “Buy” rating for Cisco’s stock, eyeing a target price of $55.56, reflective of a 10.49% price increase over the course of the next 12 months. The average price target as set by the 16 analysts presently covering the equity comes out to $57.08, correlating to a predominant “Buy” recommendation status.
The overarching Communication Equipment sector performance, average analyst ratings, and returns on stocks within this group show potential scope for investors. The sector also pinpoints some of the largest operational equities and top-rated analysts, including Raymond James, Needham & Company, Barclays, Morgan Stanley & Co., and TD Securities.
Analyst Reactions and Market Sentiment:
Analysts remain divided on Cisco’s prospects. Some see the weak guidance as a temporary hurdle, highlighting the company’s strong cloud business and healthy balance sheet. Others are concerned about the impact of supply chain issues and the potential for a broader economic slowdown.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
