Tech bellwether Cisco posted better than expected quarterly results after Tuesday's market close. That's good news for more than just Cisco shareholders, because if Cisco is holding up well it means that companies are feeling comfortable enough to upgrade their networking equipment.
Cisco Systems is preparing to lay off about 1,300 workers, just a few months after the world's largest maker of computer networking equipment warned that growing economic uncertainty is making it tougher to close sales.
Despite the pounding Cisco took after recently lowering its guidance, many analysts still rate the stock a buy. Says one: It dominance is "so compelling, that you can surely expect to be amply rewarded."
Cisco Systems grew its fiscal first-quarter profit 8% from a year ago, beating analysts' expectations, but lower margins have pushed its shares down more than 12% in extended trading.