The stock price jumped on strong earnings and forecast
One of the largest American multinational technology conglomerates - Cisco Systems posted earnings for the fiscal Q1 2021 that made its stock price rally.
Cisco reported revenue of $11.93 billion, topping the $11.85 billion consensus. The adjusted EPS figures came in at 76 cents per share, higher than the 70 cents forecasted.
On an annualized basis, the revenue fell 9% in the quarter, being in line with the expectations. Moreover, this marks the fourth consecutive quarter when Cisco reported a decline in revenue. According to Cisco, a large part of its revenue came from equipment for corporate and government data centers and office sales. For the public sector, the company reported a 5% increase in orders.
For the future, Cisco expects the adjusted EPS to reach a high of 76 cents. The revenue is expected to be flat and even report a 2% decline in the fiscal second quarter. The market is looking for 73 cents in adjusted EPS, while the revenue is expected to decline 3% to $11.63 billion.
Following the news, Cisco's stock price gained 9%. Year-to-date, the company's stock price fell around 20%, while USA500 went up 9%.