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'Fast Money' Recap: Cisco's Back

Stocks in this article: CSCO JNPR RVBD FFIV AKAM DMND ILMN

NEW YORK ( TheStreet) -- Cisco (CSCO) shares were up in after-hours trading on Wednesday after it posted a strong earnings report.

The networking equipment maker posted a revenue and earnings beat while raising its dividend.

Pete Najarian said on CNBC's "Fast Money" TV show that Cisco has stabilized and is benefiting from a return of enterprise spending.

Ron Insana said Cisco stock had telegraphed the company's turnaround for some time. He also said Cisco CEO John Chambers has managed the restructuring quite well.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Tim Seymour said the earnings results vindicate what Chambers has been doing to reshape the company and put him back in a position where his comments on such matters as government spending have to be listened to.

Seymour said Cisco has reinvented itself as it focuses on its core business of routing, switching and services. Karen Finerman said the stock is definitely worth a look because its valuation is not stretched in anyway.

Brian Marshall, an analyst with ISI Group, also said Cisco is moving in the direction, but he liked Juniper Networks (JNPR) better over the next four quarters.

CNBC reporter Jon Fortt, who was on the Cisco conference call, noted that company's guidance showed an EPS of 45 cents to 47 cents in the third quarter along with a gross margin of 61.5% to 62%. Chambers said the next several quarters may be difficult because of the disruptive impact of the floods in Thailand.

As for derivative trades, Najarian liked Riverbed Technology (RVBD), F5 Networks (FFIV) and Akamai (AKAM).

Melissa Lee, the moderator of the show, shifted the panel's attention to Diamond Foods (DMND), which was plunging more than 40% after saying it was restating its 2010 and 2011 financial statements.

CNBC senior stocks commentator Herb Greenberg said that move jeopardizes Procter & Gamble's (PG) sale of its Pringles Brand to Diamond Foods for $2.35 billion.

Greenberg said there are provisions in the merger agreement that would allow P&G to exit the deal easily. Finerman said she couldn't see how the deal could hold together, while Greenberg noted that P&G has said the deal has drawn interest from other parties.

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