Cisco Systems (CSCO) - Get Report shares rose Thursday, as analysts raised their share-price targets after the networking-technology giant reported stronger-than expected earnings for its fiscal third quarter.
In the quarter ended April 25, GAAP earnings per share totaled 79 cents on 8% lower revenue to $12 billion. Analysts were expecting the company to report earnings of 71 cents a share on revenue of $11.88 billion.
Cisco also forecast higher-than-expected earnings per share for the fourth quarter.
As for the analysts, “this was one of the most positive Cisco earnings calls in a while,” Citi’s Jim Suva wrote in a commentary cited by Bloomberg.
Not only were the results and outlook “materially stronger than expected,” but Cisco “also laid out how the company is offering more flexible payment terms” during the coronavirus pandemic, which should generate more customer loyalty.
Suva lifted his price target to $48 from $40 and affirmed his buy rating.
Meanwhile, Jefferies analyst George Notter was “quite impressed with the company’s ability to hit top-line expectations, guide in-line for July, and post consistent product order growth rates,” he wrote in a report cited by Bloomberg.
The factors attracting enterprises to Cisco “aren’t going away - even in a softer economic environment,” he said.
Notter boosted his share-price target $49 from $45 and maintained his buy rating.
Cisco shares recently traded at $44.16, up 5.3%. The stock has slid 6.6% over the past three months, compared with an 18% drop for the S&P 500 index.