NEW YORK (TheStreet) -- Cisco (CSCO) reported better than expected earnings and revenue for the 2017 first quarter, but it's still not the "growth stock" it used to be, The Wall Street Journal's Dennis Berman said on CNBC's "Closing Bell" this afternoon.
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After Wednesday's closing bell, Cisco reported earnings of 61 cents, topping expectations of 59 cents per share. Revenue rose 1% year-over-year to $12.35 billion, above estimates of $12.33 billion. However, the company gave a downbeat outlook for the 2017 second quarter, saying it expects revenue to slide by 4% year-over-year vs. previous estimates of 2%.
"They're telling us revenue is down next quarter so again this is a company that has to manage its calls, manage its capital spending," Berman noted. "It's not a growth stock in the way that we perceived it 15 years ago or even 10 years ago. It's just sort of a solid value stock at this point."
Cisco is a "great" company and has had "very strong" past couple of quarters, CNBC "Fast Money" trader Guy Adami said on the show.
With rates at historically low levels, investors were looking to Cisco for growth and for yield, he noted. But now that the Fed is expected to raise rates at its December meeting, yield isn't as important. "You wonder, can it stand alone?"
"I will say this $30 is where it bounced up against all last year and failed," Adami said. "We're trading around there now so as resistance becomes support it better hold basically this $30 level."