The investor concerns over network stocks are effectively overcome with Cisco Systems Inc. (NASDAQ:CSCO) reporting third quarter earnings which beat analysts’ estimates. The revenues of the company were reported at $12.2 billion which translated into $0.51 per share while the analysts at Thomson Reuters had estimated at $0.49 earnings per share.
Increase in Revenue
The revenue of Cisco Systems Inc. (NASDAQ:CSCO) during the same quarter in the previous year was at $11.59 billion or $0.48 earnings per share. Thus the firm had made a nominal improvement over its previous year’s revenues amidst the sluggish growth in the economy.
The Chief Executive Officer of Cisco Systems Inc. (NASDAQ:CSCO) had commented that the company is operating at a very high level in a slow and steady economic environment that is prevailing at present. In addition, he also reported that there are some positive encouraging signs coming up from the United States and other parts of the world.
This revenue reports of Cisco Systems Inc. (NASDAQ:CSCO) which are above the analysts’ estimates could show some positive signs to remove the negative concerns of investors over the network stocks. The increase in revenue of the company resulted in the share prices of Cisco Systems Inc. (NASDAQ:CSCO) to break the 52 week high in its closing prices. The share prices of Cisco Systems Inc. (NASDAQ:CSCO) is now expected to set a new target of $22 per share owing to its increase in revenues and hence the positive earnings per share higher than the analysts’ estimates.