The company just posted strong results that included both top and bottom-line beats.
Robbins said that both revenue growth and earnings per share were up in the quarter, with order growth of 10%. This was the highest level of growth the company has seen in a decade.
When asked about their demand, Robbins explained that companies are investing now as they prepare both for a return to the office and a hybrid work environment. Customers are also responding to Cisco's many new products, including those that run off their custom-designed silicon.
Speaking of silicon, Robbins said all of their suppliers are working hard to meet demand and resolve shortages as they occur. Thus far, the effects have been minimal for Cisco, he said.
We looked at the charts of CSCO on May 17 ahead of earnings and wrote that, "Traders should continue to hold longs from previous recommendations. Those who are flat could go long CSCO near $52 risking to $49. Our nearest price target is $71."
Let's see how things look after earnings.
In this updated daily bar chart of CSCO, below, we can see that prices have yet to break out to the upside to make new highs for the move up. Prices could test the rising 50-day moving average line if broad market weakness spills over to CSCO. The On-Balance-Volume (OBV) line continues its sideways movement started in late March. The Moving Average Convergence Divergence (MACD) oscillator is above the zero little line but could turn up or down at this point in time.
In this weekly Japanese candlestick chart of CSCO, below, we can see a balanced candle for CSCO now. There are upper and lower shadows and a relatively small real body. Traders have not managed to push prices significantly up or down. The OBV line shows a little weakness the past six weeks and the MACD oscillator has narrowed as the strength of the uptrend has faded a bit.
In this daily Point and Figure chart of CSCO, below, we can see the same $71 price target we saw before the earnings release. CSCO needs a trade at $54.16 to refresh the uptrend.
Bottom line strategy: Continue the strategy from the 17th -- Traders should continue to hold longs from previous recommendations. Those who are flat could go long CSCO near $52 risking to $49. Our nearest price target is $71.