Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, November 15, 2024

Article Excerpt

CISCO SYSTEMS INC., $57.46, Nasdaq symbol CSCO, is still a buy. Through their shares, investors tap a global producer of hardware and software that links and manages computer networks. In March 2024, Cisco completed its acquisition of Splunk Inc. (Nasdaq symbol SPLK) for $28 billion. The firm makes software that lets organizations analyze their data in real time. The purchase will enhance Cisco’s current cybersecurity software business. Their combined expertise in AI will also help clients better anticipate and prevent cyberattacks. Despite that purchase, the company’s revenue in its fiscal 2025 first quarter, ended October 26, 2024, fell 5.6%, to $13.84 billion from $14.67 billion a year earlier. Even so, that beat the consensus forecast of $13.78 billion. The lower revenue is mainly due to a 9.2% drop in sales of new equipment (73% of total revenue). However, demand for software and services (27%) rose 5.6%. Earnings in the quarter, excluding unusual items, declined 18.0%, to $0.91 a share (or a total of $3.67 billion)…