Cisco Rides Higher Amid Earnings Beat

Cisco Systems, Inc. CSCO stock was riding high Thursday, even though the results that the company declared after market hours on Wednesday might not be classified as good.

The company reported revenue of $12.2 billion, higher than the consensus analysts’ estimate of $12.16 billion; EPS of $0.54 was also higher than consensus analysts’ estimate of $0.52. However, guidance was weak, which it attributed to weakness in its service providers business and in emerging markets.

Following the results, analysts at MKM Partners reiterated their Neutral rating on the stock, but lowered the price target to $24 from $24, whereas analysts at SunTrust raised their price target to $30 from $27, while keeping the Buy rating unchanged.

John Chambers, chairman & CEO of Cisco Systems was on CNBC Thursday morning, where he was interviewed by Jim Cramer. Apart from the company’s results, Chambers also discussed the comment made by President Barack Obama on net neutrality.

"I think, if you look we have a number of tailwinds, our switching is back and growing well, our data center growth is good, wireless is growing well, our digitization of countries and cities and businesses are growing very well. We have two headwinds, service providers and emerging markets. If either of them comes back in 2015, that will help our growth a lot and we are extremely well positioned for both […]," Chambers said.

Chambers feels that it was a major mistake to revisit Title II on talks regarding net neutrality. He revealed that a month ago he was in Europe, where he found that European commissioners, country leaders and companies, all view the U.S. model as right. He feels that broadband build out in U.S. over the last four to five years has been very good, perhaps even the best in the world.

"To go back to a 1950’s voice mentality with Title II and net neutrality will be a tremendous mistake for our country […] this will cost the country jobs and economic leadership," Chambers added.

Cisco closed Thursday's session at $25.68, up 2.2 percent.