Cisco Systems (CSCO) Shares Soar 4.85% on Strong Q3 Earnings
Cisco Systems (CSCO) shares surged 4.85% today, reaching their highest level since February 2025, with an intraday gain of 7.28%.
The strategy of buying CSCO shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 4.13% annualized return. This result suggests that the strategy captured some of the subsequent price appreciation, but the overall performance was relatively modest, indicating the need for further optimization or considering other strategies to enhance returns.Cisco's fiscal Q3 results exceeded analyst expectations, driving a significant increase in its stock value. The company reported earnings and revenue that surpassed Wall Street estimates, primarily due to a rebound in new product orders. This positive performance was further bolstered by strong enterprise spending on AI and software, positioning Cisco as a top performer in the market.
Cisco's management provided a bullish outlook for fiscal 2025, anticipating earnings per share (EPS) between $0.96 to $0.98 and revenue from $14.50 billion to $14.70 billion. This optimistic forecast, combined with the company's upgraded stock rating by Wells Fargo, contributed to the surge in Cisco's stock value. Additionally, Cisco raised its annual profit forecast, adjusting its per-share profit expectation to between $3.77 and $3.79, up from a prior projection of $3.68 to $3.74, attributed to advancements in AI.
