Jefferies Group Comments on Cisco Systems, Inc.’s Q3 2018 Earnings (CSCO)

Cisco Systems, Inc. (NASDAQ:CSCO) – Analysts at Jefferies Group raised their Q3 2018 EPS estimates for shares of Cisco Systems in a research report issued to clients and investors on Thursday. Jefferies Group analyst G. Notter now forecasts that the network equipment provider will post earnings of $0.58 per share for the quarter, up from their prior estimate of $0.56. Jefferies Group currently has a “Buy” rating and a $48.00 price target on the stock. Jefferies Group also issued estimates for Cisco Systems’ Q4 2018 earnings at $0.63 EPS, Q1 2019 earnings at $0.65 EPS, Q3 2019 earnings at $0.66 EPS, Q4 2019 earnings at $0.69 EPS and FY2019 earnings at $2.61 EPS.

Other research analysts also recently issued reports about the stock. Piper Jaffray Companies reiterated an “overweight” rating and issued a $44.00 price target on shares of Cisco Systems in a research report on Wednesday, January 10th. Berenberg Bank reiterated a “hold” rating and issued a $33.00 price target on shares of Cisco Systems in a research report on Tuesday, October 24th. Stifel Nicolaus reiterated a “hold” rating and issued a $46.00 price target (up from $40.00) on shares of Cisco Systems in a research report on Thursday, February 15th. William Blair reiterated an “outperform” rating on shares of Cisco Systems in a research report on Thursday, February 15th. Finally, Citigroup reiterated a “buy” rating and issued a $40.00 price target on shares of Cisco Systems in a research report on Thursday, November 16th. They noted that the move was a valuation call. Twelve analysts have rated the stock with a hold rating, twenty-four have issued a buy rating and one has given a strong buy rating to the stock. The company has an average rating of “Buy” and a consensus price target of $43.57.

Cisco Systems (NASDAQ:CSCO) opened at $44.38 on Monday. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.43 and a quick ratio of 2.38. Cisco Systems has a 52-week low of $30.36 and a 52-week high of $45.13. The firm has a market cap of $219,150.00, a P/E ratio of -138.69, a price-to-earnings-growth ratio of 3.29 and a beta of 1.23.

Cisco Systems (NASDAQ:CSCO) last issued its quarterly earnings data on Wednesday, February 14th. The network equipment provider reported $0.63 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.59 by $0.04. The company had revenue of $11.89 billion for the quarter, compared to the consensus estimate of $11.82 billion. Cisco Systems had a negative net margin of 3.00% and a positive return on equity of 17.77%. During the same quarter in the prior year, the firm earned $0.57 earnings per share.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Stonehearth Capital Management LLC purchased a new position in shares of Cisco Systems in the 4th quarter worth $102,000. Tortoise Investment Management LLC grew its stake in shares of Cisco Systems by 36.1% in the 2nd quarter. Tortoise Investment Management LLC now owns 3,309 shares of the network equipment provider’s stock worth $104,000 after buying an additional 878 shares in the last quarter. Mountain Capital Investment Advisors Inc purchased a new position in shares of Cisco Systems in the 2nd quarter worth $104,000. Keeler Thomas Management LLC purchased a new position in shares of Cisco Systems in the 4th quarter worth $108,000. Finally, Manchester Capital Management LLC grew its stake in shares of Cisco Systems by 10.7% in the 2nd quarter. Manchester Capital Management LLC now owns 3,606 shares of the network equipment provider’s stock worth $113,000 after buying an additional 350 shares in the last quarter. 75.06% of the stock is owned by institutional investors.

In related news, CAO Prat Bhatt sold 2,606 shares of the firm’s stock in a transaction on Wednesday, November 22nd. The shares were sold at an average price of $36.49, for a total transaction of $95,092.94. Following the completion of the transaction, the chief accounting officer now directly owns 89,184 shares of the company’s stock, valued at $3,254,324.16. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Rebecca Jacoby sold 75,021 shares of the firm’s stock in a transaction on Tuesday, December 19th. The shares were sold at an average price of $38.42, for a total transaction of $2,882,306.82. Following the transaction, the senior vice president now directly owns 257,476 shares of the company’s stock, valued at $9,892,227.92. The disclosure for this sale can be found here. Insiders have sold 348,643 shares of company stock valued at $12,892,271 over the last ninety days. 0.05% of the stock is currently owned by corporate insiders.

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 25th. Investors of record on Thursday, April 5th will be paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 2.97%. This is a boost from Cisco Systems’s previous quarterly dividend of $0.29. The ex-dividend date of this dividend is Wednesday, April 4th. Cisco Systems’s dividend payout ratio (DPR) is presently -362.50%.

Cisco Systems announced that its board has initiated a stock buyback program on Wednesday, February 14th that permits the company to repurchase $25.00 billion in shares. This repurchase authorization permits the network equipment provider to buy shares of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s management believes its shares are undervalued.

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About Cisco Systems

Cisco Systems, Inc designs and sells a range of products, provides services and delivers integrated solutions to develop and connect networks around the world. The Company operates through three geographic segments: Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific, Japan and China (APJC).

Earnings History and Estimates for Cisco Systems (NASDAQ:CSCO)

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