Cisco: shares up 4% after strong results

(CercleFinance.com) - Shares of tech bellwether Cisco rose almost 4% on Thursday after the network equipment maker's results surprised investors.


Last night the California-based company reported strong third-quarter figures, at the upper end of its guidance.

Net profit for the fiscal third quarter ended April rose to 3 billion dollars, or 69 cents a share, from 2.7 billion dollars, or 56 cents a share a year ago.

Its quarterly revenue rose 4% to 13 billion dollars.

"IT spending continues to do very well, despite the uncertain macro," one analyst said.

"As enterprise IT expands into the cloud, Cisco benefits from the modernization of infrastructure," he added.

Citing "broad strength" in the company's results, Credit Suisse raised its target price on the stock from 47 dollars to 52 dollars.

The company's stock rose to 54.4 dollars in heavy trading on Thursday, boosting shares of other tech companies in its wake.

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