Cisco Systems, Inc. (NASDAQ:CSCO) investors have a smile on their faces Wednesday evening, after the networking giant delivered fourth-quarter financial results that beat Wall Street’s expectations. Specifically, CSCO reported total revenues and EPS of $11.9 billion and $0.63, beating the Street’s $11.8 billion and $0.59 estimates, respectively.
GBH analyst Daniel Ives commented, “This was another step forward for Robbins & Co. as Cisco looks to slowly be getting back on the modest growth trajectory with a software centric approach the key DNA in its turnaround plan. It appears the combination of better execution, newer product initiatives on cloud/security/IoT, and the focus on recurring revenue translating into a modestly improved selling environment for Cisco in the field and an expanding pipeline heading into the rest of FY18, as evidenced this quarter and by the company’s brighter April outlook.”
“The broadened Cisco portfolio and software centric approach has been a catalyst for the company, as we believe the company’s multifaceted hardware/software centric approach is music to ears of customers and partners. While the company has clear challenges given secular headwinds in its traditional sweet spot of switching/routing, we believe Cisco is slowly putting together newer growth engines (e.g. security, SaaS model, Cisco ONE, cloud initiatives) to help lay the groundwork for a stronger bookings growth trajectory in FY18/FY19,” the analyst continued.
As such, Ives reiterates an Attractive rating on Cisco stock, with a price target of $45, which implies a slight upside from today’s closing price. (To watch Ives’ track record, click here)
This analyst is not the only fan of Cisco stock on Wall Street, as TipRanks analytics exhibit the stock as a Strong Buy. Based on 25 analysts polled in the last 3 months, 20 rate a Buy rating on CSCO while 5 issue a Hold. The 12-month average price target stands at $42.39, marking a 3% upside.
Shares of Cisco are up nearly 6% to $44.80 in after-hours trading Wednesday.