Cisco Gaps Down on Earnings: Further Decline Likely Today

May. 9.07 | About: Cisco Systems, (CSCO)

Hickey and Walters (Bespoke) submit: CSCO is currently trading down over 5% in the pre-market after reporting earnings after the close yesterday.

We went back and looked at all prior days where CSCO gapped down after reporting earnings to see how the stock typically reacts during regular trading hours. As shown in the chart below, of the 12 times the stock has opened lower on earnings since 2002, it has gone up from the open just once. If the past is any guide, the stock looks to continue trading lower throughout the trading day.

click to enlarge