May 7, 2008- Cisco (CSCO) beat analyst expectations last night. The largest maker of networking equipment reported profits of $0.38 per share, 2 cents better than consensus estimates of $0.36 per share. Revenues rose 10.1% year-over-year to $9.8 bln vs. $9.75 bln cons. Yet, according to Bloomberg, shares failed to rally after CEO John Chambers gave an uncertain outlook for the overall economy. Although guidance was inline with expectations, Chambers said the U.S. market has softened describing conditions as being "a little bit in uncharted waters."
Bulls like CSCO and may use any weakness as a buying opportunity. Sell-stops can be set below the 50-DMA ($24.70).
Sentiment: Bullish
$23.65 (02/10/08)
