Why Analysts were Bullish on Cisco Systems, Inc. (NASDAQ:CSCO)

Cisco Systems , Inc. (NASDAQ:CSCO) is getting hammered after the company decreased its revenue outlook for the next 3-5 years, but several analysts think that the networking hardware company is expected to grow in the future, and the current revenue declines are a part of Cisco’s transformation towards being a software company. Cisco acquired AppDynamics for $3.7 billion earlier this year. It is revamping its routers product lines to incorporate IoT and AI. Cisco announced Catalyst 9000 routers which are first of their kind.

Similarly, Cisco’s encrypted traffic analytics tools are getting a huge traction in the corporate world. Citigroup recently said in a report that the market is overreacting to Cisco’s revenue forecast revision. The firm said that analysts were expecting a revenue guidance of -2% to +2%.

For this year Cisco Systems 's revenue will be around 47,94 billion Dollar. This is according to the average of the analysts' estimates. This is slightly lower than 2016's revenue of 49,25 billion Dollar.

Historical revenues and results Cisco Systems plus estimates 2017

financial analysis

The analysts anticipate for 2017 a record net profit a 11,94 billion Dollar. For this year the consensus of the result per share is a profit of 2,38 Dollar. So the price/earnings-ratio equals 13,15.

Huge dividend Cisco Systems

For this year the analysts expect a dividend of 1,08 Dollar per share. Thus the dividend yield equals 3,45 percent. The average dividend yield of the hardware & equipment companies equals a moderate 0,32 percent.

Latest estimates around 37 Dollar

Morgan Stanley , BMO Capital Markets and Berenberg recently provided recommendations for the stock.

Based on the current number of outstanding shares Cisco Systems 's market capitalization 159,16 billion Dollar.

Friday the stock closed at 31,3 Dollar.

Historical stock prices Cisco Systems2007-2017

financial analysis cisco systems

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