Cisco Is Winner in Stay-at-Home Economy, Jim Cramer Says
Cisco caught Wall Street’s attention after it reported stronger-than-expected earnings after the bell Wednesday.
The company reported adjusted earnings per share of 79 cents on revenue of $12 billion. The expectation had been for earnings of 71 cents on revenue of $11.88 billion.
Cisco said it saw strong results as many companies saw higher demand for software, tech gear and security support. It expects the same factors to be a tailwind for near-term sales growth. Cisco expects earnings per share of around 72 cents for the current quarter.
"The pandemic has driven organizations across the globe to digitize their operations and support remote workforces at a faster speed and greater scale than ever before. We remain focused on providing the technology and solutions our customers need," CEO Chuck Robbins said in the earnings release.
As for the future as some states begin to reopen, Robbins said that return to work could also benefit the networking giant as cybersecurity needs are expected to grow. "And then the question about when they return to the office and (the question of) what does that mean to the infrastructure supporting their campus environments is certainly one that we're going to be watching,” Robbins said in a call with analysts Wednesday.
Cisco also seems to be benefitting from its own services as 95% of its workforce continues to work remotely.
What does it all mean for the stock? Breaking down his top takeaway from an interview with Robbins….