Cisco’s stock price movement
Cisco Systems (CSCO) stock soared 6.7% on May 16 after the company posted upbeat results for the third quarter of fiscal 2019, which ended on April 27, on May 15. The tech giant also rose as much as 3% in after-hours trading on May 15. Cisco stock has gained 30.9% YTD (year-to-date) as of May 16, higher than the S&P 500’s gain of nearly 14.7%.
However, the stock has fallen 0.04% in May. The stock prices of peers Juniper (JNPR) and Ericsson (ERIC) have also decreased 6.88% and 5.76%, respectively, on a YTD basis, probably due to tensions related to the US-China trade spat. GoPro (GPRO), however, has gained 22.5% in the same period.
Cisco’s third-quarter results in brief
Cisco exceeded Wall Street’s expectations in terms of both earnings and revenue in the third quarter. Its adjusted EPS of $0.78 also rose 18.2% YoY (year-over-year), while its revenue rose 4% YoY in the quarter. Cisco also has a robust fourth-quarter outlook in terms of revenue, which has boosted investors’ confidence in its stock.
GoPro reported better-than-expected revenue and a narrower-than-expected loss in the first quarter of 2019 on May 10. It also raised its revenue guidance for 2019. Juniper also topped earnings and revenue estimates in the first quarter but lowered its 2019 earnings guidance. Mobile telecommunications equipment maker Ericsson also reported higher-than-expected first-quarter operating earnings in April and raised its outlook for the global networks market.