Is Cisco Systems Stock a Buy?
Cisco Systems (NASDAQ: CSCO) posted better-than-expected fiscal third-quarter results following the market close Wednesday. Yet because of management's disappointing outlook for the current quarter, the stock dropped during after-hours trading.
The tech giant is still in the midst of a multiyear transition as it shifts its focus away from its legacy on-premises hardware networking business and toward its growing subscription-based software portfolio. So is this latest report an indication that investors should stay away from the company, or should they buy the dip and hope for it to have a brighter future beyond the short-term uncertainties?
Thanks to strong demand across its broad portfolio, revenue during Cisco's fiscal Q3, which ended May 1, increased by 7% year over year to $12.8 billion. Even if you exclude the extra revenue contributions from acquisitions during that quarter, revenue growth would have reached approximately 6.1%, comfortably above management's guidance for growth in the range of 3.5% to 5.5%.
Source Fool.com
