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Cisco Stock: What Should Investors Consider After Recent Earnings?

Dec. 03, 2021 11:49 AM ETCisco Systems, Inc. (CSCO)10 Comments


  • Cisco Systems reported Q1 results that were weaker than expected - the company missed top-line estimates for the first time in many quarters.
  • Overall, company performance wasn't bad, however, and strong points such as a compelling free cash flow conversion rate remained in place.
  • CSCO is looking like a fairly-valued lower-risk pick with a solid return outlook following the steep post-earnings share price drop.
  • Looking for a helping hand in the market? Members of Cash Flow Kingdom get exclusive ideas and guidance to navigate any climate. Learn More »
Cisco Announces Quarterly Earnings

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Article Thesis

Cisco Systems, Inc. (NASDAQ:CSCO) is a leading networking products company that has seen its shares come under pressure recently, following quarterly results that missed revenue estimates, and that included weaker-than-expected guidance for the current quarter.

Cisco is, however, still a

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This article was written by

Jonathan Weber profile picture

Jonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan’s primary focus is on value and income stocks but he covers growth occasionally.

He is a contributing author for the investing group Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (10)

Jim Van Meerten profile picture
CSCO - Best NASDAQ 100 Stock? seekingalpha.com/...
Just sold out of $CSCO, rotated into $PRU for higher yield, buyback growth.

Maybe I'll be back around $45, but not too crazy about tech right now.

Good Article. CSCO has done well this year. However it it in a $54-$60 trading range. Drops 10% after every earnings which are not too bad but the CEO gives cautious guidance and the stock falls 10%. It slowly recovers till next earnings and yes you guessed it. Cycle repeats - Max
Respectfully, I have a different take on Cisco's valuation as all the metrics I track are higher than the company's 10, 20 and 30 year medians - P/E, Price/Sales, Price/Book, and Enterprise Value to EBITDA.
I really think it’s time for a new CEO at Cisco the stock seems to trade between 45-55 never seem to break 60
CSCO and INTC just plod along. But both have paid well over many years. Long both.
Jonathan Weber profile picture
@G. Blair Bauer thanks for sharing! Intc also looks solid at current prices
Lots of investors love Cisco so I believe the stock will go up. But under the covers Cisco ( besides install base being a cash cow) isn't doing well. They have missed the Cloud Titan market because to build and maintain a Cisco Network today it cost 3X as much. They are now losing many new Networks in the Enterprise. Cisco architecture dates back to 1986. Cisco mostly only gets add ons. Cisco strategy has been on stop shopping for hardware and software. If I had a network Mgr. working for me and they bought all Cisco I would fire them. I want best of Breed and that is not Cisco apps such as Security and WebEx. I also find it interesting that smaller companies like Arista have managed their way around the supply chain issue. Point is Chuck and many of his group are just not up to the job.
Jonathan Weber profile picture
@Terry Eger thanks for your perspective! Anet hs done better on an operational basis, true
vf__101 profile picture
@Terry Eger Great I think you hit the nail right on the head.
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