Cisco’s Results Show Stabilizaton At Low Level; CEO Chambers Talks Recovery
$140 billion networking goliath Cisco Systems (CSCO) reported 1st quarter fiscal year earnings after the close yesterday. Revenues were off 13% from the year ago period – though they were up 6% from the previous quarter. Net income was off 15% from the year ago period – though it was up 15% from the previous quarter. All in all the numbers do suggest stabilization, albeit at a low level.
However, CEO John Chambers was talking recovery on the conference call with analysts. He said the recovery “is well under way” and that economic improvements were “gaining momentum” worldwide. He also predicted that Cisco’s revenues would grow year over year in the current quarter after a year of declines.
On the valuation front, the stock seems fully valued (or more) to me at these levels.
Disclosure: Top Gun has no position in Cisco (CSCO) shares.