Cisco Systems Earnings Surpass Expectations
Cisco Systems Incorporated (CSCO) disclosed its net income for the second quarter and is was above the expectations from Wall Street analysts. The financial results of Cisco Systems included net income of $2.2 billion, translating to 40 cents per share compared to $1.5 billion, or 27 cents per share, earned in the past year for the same period. The increase is also equivalent to 45 percent from the preceding fiscal quarter. Revenue increased by 11 percent to $11.5 billion from 2011 Q2 performance.
According to John Chambers, the company’s Chairman and CEO, Cisco delivered an impressive performance with record revenue and earnings per share, and the company is expecting its three-year plan to boost earnings faster than its revenue. Chambers also said that management’s operational focus continues to bring positive results and that the company would continue with its focus and aggressiveness in using intelligent networks to meet its business objectives.
The quarter’s profit surpasses previous quarters’ performance and the company has shown a steady increase in financial results over the last four quarters. Analysts have given a better outlook for the company’s prospective performance.
Technical analysis suggest that after experiencing a downtrend during second half of 2011 and first half of 2011 Cisco might be forming an upward trend. The first major test for the stock currently trading at $20 will be the $22 level, followed by the $24 resistance.
Cisco is a multinational organization with business dealing with the design, manufacturing, and sales of Internet-based consumer electronics, networking, and all other services pertaining to communications and information technology.