The Californian-based manufacturer of networking software and hardware is expected to report a drop in revenues from $12.1 billion in Q1 down to $11 billion for Q2. Year-on-year revenues are expected to fall from $12.1 billion in 2013. It is worth noting that Cisco’s quarterly figures have come in better than expected every quarter in the last two years.
The last two weeks have seen Cisco Systems and Samsung come to an agreement to lift patent restrictions for each other, in an effort to improve both companies' product development. This is not the first case of sharing, although it is not particularly common. Both management teams highlighted the benefits that could be offered.
Since January 2013 its shares are over 13% higher, and at the same time the company has a 2.98% dividend yield ensuring that the $122 billion market capitalised company has a solid following with investors. At present IG client accounts are 93% long.
Below the 200-day moving average, the stock price is some way off the highs of $26-per-share last seen in early August. Support comes in at $22, with $23.09 (200-DMA) acting as a barrier to upside presently. Any moves through this metric could see profit-taking at $23.70/80 previous support level.
A drop through $20.50 on a daily closing basis could mark the confirmation of a head and shoulders pattern and would set the stock price on a revisit to the November 2012 lows of $16.50.