“I think this is a rally that investors should fade and I’d also fade rival Juniper which is climbing in the after hours on Cisco’s strength,” says Fast trader Tim Seymour.
”It’s not going to be a big hat size anytime soon,” adds trader Dan Nathan.
Those comments are the traders’ knee jerk reaction to Cisco results, after the tech titan reported earnings on Wednesday after the bell.
By the numbers, the company said its earnings excluding items rose to 40 cents a share from 43 cents a share a year earlier. Analysts had expected earnings of 38 cents a share on revenue of $10.96 billion, according to Thomson Reuters.
Also, the company said revenue increased to $11.2 billion from $10.8 billion a year ago. Also sales totaled $11.2 billion surpassing Street expectations, which were under $11 billion.
In addition Cisco has been aggressively trying to cut expenses due to greater austerity among state and local governments. The company depends on government spending for about a fifth of its revenue.
In July Cisco said it would cut 15 percent of its workforce and sell a set-top box factory in Mexico as part of an effort to slash annual expenses by $1 billion.