U.S. News

Cisco shares rise on upbeat earnings expectations

Shares of network gear maker Cisco Systems Corp. jumped Monday on rosy analyst expectations for the company's fiscal third-quarter earnings, due out this week.

The stock rose $1.64, or 6.6 percent, to $26.35 in morning trading.

"Cisco is enjoying an upturn in its business with orders and revenues accelerating broadly across regions and product lines," Jefferies & Co. analyst William Choi told investors in a note Monday.

Choi, who has a "Buy" rating on the company's stock, said he expects Cisco to surpass Wall Street expectations when it releases results after the closing bell Wednesday.

On average, analysts surveyed by Thomson Reuters expect earnings of 39 cents per share on revenue of $10.2 billion for the three months ended in April.

Last quarter Cisco topped both its own and Wall Street forecasts, with earnings up 23 percent from the year before and revenue up 8 percent.

Morgan Keegan analyst Simon Leopold, who has a "Outperform" rating on the stock, said investors "will be encouraged" by Cisco returning to double-digit revenue growth in the most recent quarter.