How Cisco Systems Performed Ex-Splunk, 8 Analysts Weigh In On Q3 Earnings: Here’s Where ‘Upside Primarily Came From’
Shares of Cisco Systems Inc (NASDAQ:CSCO) declined in early trading on Thursday, even after the company reported stronger-than-expected results for its fiscal third quarter.
The results came amid an exciting earnings season. Here are some key analyst takeaways.
- Goldman Sachs analyst Michael Ng maintained a Neutral rating, while reducing the price target from $50 to $48.
- Piper Sandler analyst James Fish reiterated a Neutral rating, while lifting the price target from $51 to $52.
- Oppenheimer analyst Ittai Kidron reaffirmed an Outperform rating, while raising the price target to $58.
- Rosenblatt Securities analyst Mike Genovese maintained a Neutral rating, while raising the price target from $54 to $56.
- JPMorgan analyst Samik Chatterjee reiterated a Neutral rating and price target of $53.
- BofA Securities analyst Tal Liani maintained a Buy rating and price target of $60.
- KeyBanc analyst Thomas Blakey reaffirmed a Sector Weight rating on the stock.
- Needham analyst Alex Henderson maintained a Hold rating on the stock.
Check out other analyst stock ratings.
Goldman Sachs: Cisco System reported earnings of 88 cents per share, beating consensus of 83 cents per share, on better-than-expected gross margins, Ng said in a note. The Splunk acquisition contributed $413 million in revenues but was dilutive to earnings by 1 cent per share, he added.
Although opex was slightly higher than expected, the company’s cost management was “impressive,” given that “opex was flat qoq despite a partial contribution from the Splunk acquisition,” the analyst stated. The guidance for the fiscal fourth quarter and full year was broadly in-line with expectations, he added.
Piper Sandler: Cisco Systems’ results indicated weakness in the core Networking, Security, and Collaboration businesses, Fish said. While the reported total revenue was down 13% year-on-year to $12.7 billion, taking Splunk’s contribution into account, …
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