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Cisco Systems (NASDAQ:CSCO) Posts Earnings Results

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Cisco Systems (NASDAQ:CSCO - Get Free Report) announced its earnings results on Wednesday. The network equipment provider reported $0.77 EPS for the quarter, missing analysts' consensus estimates of $0.91 by ($0.14), Zacks reports. Cisco Systems had a net margin of 17.73% and a return on equity of 25.70%. Cisco Systems updated its Q3 2025 guidance to 0.900-0.920 EPS and its FY 2025 guidance to 3.680-3.740 EPS.

Cisco Systems Trading Up 1.6 %

Shares of CSCO traded up $1.03 during mid-day trading on Friday, reaching $64.87. The company had a trading volume of 23,689,653 shares, compared to its average volume of 18,137,774. The stock has a market cap of $258.36 billion, a price-to-earnings ratio of 27.84, a price-to-earnings-growth ratio of 4.63 and a beta of 0.84. The firm has a fifty day simple moving average of $60.07 and a 200-day simple moving average of $55.54. Cisco Systems has a fifty-two week low of $44.50 and a fifty-two week high of $66.50. The company has a current ratio of 0.88, a quick ratio of 0.80 and a debt-to-equity ratio of 0.43.

Cisco Systems Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 23rd. Shareholders of record on Thursday, April 3rd will be issued a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.53%. The ex-dividend date of this dividend is Thursday, April 3rd. This is a positive change from Cisco Systems's previous quarterly dividend of $0.40. Cisco Systems's dividend payout ratio (DPR) is 68.67%.

Cisco Systems declared that its Board of Directors has authorized a share buyback plan on Wednesday, February 12th that authorizes the company to repurchase $15.00 billion in outstanding shares. This repurchase authorization authorizes the network equipment provider to buy up to 6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Cisco Systems

In other news, Director Kristina M. Johnson sold 7,500 shares of the firm's stock in a transaction on Friday, December 6th. The shares were sold at an average price of $59.87, for a total value of $449,025.00. Following the transaction, the director now owns 65,915 shares of the company's stock, valued at approximately $3,946,331.05. This trade represents a 10.22 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Thimaya K. Subaiya sold 21,230 shares of Cisco Systems stock in a transaction on Wednesday, November 20th. The stock was sold at an average price of $57.07, for a total transaction of $1,211,596.10. Following the sale, the executive vice president now directly owns 213,834 shares in the company, valued at $12,203,506.38. This trade represents a 9.03 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 37,239 shares of company stock worth $2,166,612 in the last quarter. 0.01% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on CSCO. JPMorgan Chase & Co. upped their target price on shares of Cisco Systems from $69.00 to $73.00 and gave the company an "overweight" rating in a report on Thursday. Melius raised shares of Cisco Systems from a "hold" rating to a "buy" rating and increased their price target for the stock from $66.00 to $73.00 in a report on Monday, January 6th. Morgan Stanley increased their price target on shares of Cisco Systems from $62.00 to $68.00 and gave the stock an "overweight" rating in a report on Tuesday, December 17th. The Goldman Sachs Group increased their price target on shares of Cisco Systems from $56.00 to $63.00 and gave the stock a "neutral" rating in a report on Thursday. Finally, StockNews.com raised shares of Cisco Systems from a "buy" rating to a "strong-buy" rating in a report on Friday. Seven analysts have rated the stock with a hold rating, thirteen have issued a buy rating and three have given a strong buy rating to the company's stock. Based on data from MarketBeat, Cisco Systems currently has an average rating of "Moderate Buy" and a consensus target price of $66.53.

Check Out Our Latest Stock Analysis on CSCO

About Cisco Systems

(Get Free Report)

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.

Further Reading

Earnings History for Cisco Systems (NASDAQ:CSCO)

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