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Cisco (CSCO) Earnings Are Out, Looking for a Trade

We’re seeking a trade on Cisco (CSCO) now that earnings are out of the way, provided the indices continue higher in the short-term.

Cisco Systems, Inc. (CSCO) designs, manufactures and sells Internet Protocol (IP) based networking and other products related to the communications and information technology industry worldwide, also used in “the cloud” and business infrastructure.

CSCO Earnings

Cisco Systems (CSCO) reported earnings beat of a penny, on $0.73 per share with revenue of $12.4 billion versus the consensus estimates of $0.72 per share on revenue of $12.4 billion. This was an increase of 16% from a year earlier.
  • Same quarter revenue a year ago was 63 cents per share on sales of $11.89 billion.
  • Cisco reported revenue grew by 4.7% on a year-over-year basis.
  • The company said it expects third-quarter non-GAAP earnings of $0.76 to $0.78 per share on revenue of $12.96 billion to $13.21 billion.
  • The current consensus earnings estimate is $0.77 per share on revenue of $12.80 billion for the quarter ending April 30, 2019.- Source: IBD

CSCO Earnings – The Trade

Cisco historically tends to continue higher on a gap and go post-EPS as illustrated in this MarketSmith weekly chart. Also note CSCO’s competitors in the lower left panel, which might move in sympathy.

  • We anticipate CSCO will do the same in the weeks ahead, similar to Juniper Networks (JNPR) which is rising after an 11% beat reported on January 29, 2019.
  • Digi International (DGII) also reported a beat of 167% two weeks ago. The stock popped to the top of a large base and faded over the past 7 trading days.


CSCO Earnings Chart Weekly


The caveat is elevated volatility that needs to dissipate, so we will wait 30-45 minutes or longer for LEAPS. We’d like a pullback that gets bought shortly after the “Opening Range” if price action holds above PHOD. We’ve made this trade in the past; waiting 30-45 minutes is best as profit-taking inevitably dissipates.


CSCO 60min MOC

We’ll look out at least a month or more for ITM or slightly OTM calls, (48/49/50).

Futures were green earlier, now fading this morning.

Join us today for our LIVESTREAM broadcast during market hours, as we trade CSCO and other new positions. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.

Happy Trading,


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