Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, February 13, 2015

Article Excerpt

CISCO SYSTEMS INC., $29.43, Nasdaq symbol CSCO, jumped 8% this week after reporting better-than-expected quarterly results and raising its dividend. The company is a leading maker of hardware and software that links and manages computer networks. In its fiscal 2015 second quarter, which ended January 24, 2015, Cisco’s revenue rose 7.0%, to $11.9 billion from $11.1 billion a year earlier. That beat the consensus estimate of $11.8 billion. Without unusual items, the company earned $2.7 billion, up 8.9% from $2.5 billion. Cisco bought back $1.2 billion worth of its shares in the latest quarter. Due to fewer shares outstanding, earnings per share gained 12.8%, to $0.53 from $0.47, also beating the consensus estimate of $0.51. The company spent $1.5 billion (or 12.8% of its revenue) on research in the latest quarter, up 8.3% from $1.4 billion (or 12.7%). This spending helped Cisco upgrade many of its products so it can better compete with cheaper, software-based switching gear. Rising demand for Cisco’s new equipment is…