Cisco shares up after strong 1Q report
NEW YORK (AP) — Shares of Cisco Systems Inc., the world's largest maker of computer networking gear, climbed Wednesday after it reported improvements in business trends in its latest quarter.
THE SPARK: Late Tuesday Cisco said net income for the fiscal first quarter, which ended in October, rose 18 percent to $2.1 billion. Revenue rose 5.5 percent to $11.9 billion. Both beat analysts' estimates. CEO John Chambers said orders from large U.S. businesses were picking up again, after a dip earlier this year brought on by the turmoil in the world economy.
THE ANALYSIS: Wall Street commended the company on strong execution in tough times.
"Macro(economic) headwinds notwithstanding, Cisco's competitive positioning continues to improve," wrote John Slack at Caris & Co.
Shaw Wu at Sterne Agee said Cisco's report stands out in an earnings season that has featured miscues from Apple, Google, Microsoft and Intel. "We continue to believe Cisco) is an underappreciated turnaround story," he wrote.
SHARE ACTION: Cisco shares rose 86 cents, or 5.1 percent, to $17.71 in afternoon trading.