Cisco (CSCO) creamed Wall St. estimates and raised guidance. Profits rose 40% to $1.92 billion. Revenue was up 27% as telecoms upgraded their networks. The stock jumped 5% after hours.
How humiliating for several brokerages. They have been downgrading the stock all month, and it has fallen from $28.92 on January 12 to $27.28 before the close yesterday.
On January 16, Prudential downgraded the stock to "neutral". On the same day, Banc of America dropped its rating to "neutral" as well. Then, on January 22, JMP Securities dropped its rating to "market perform". And, on the 26th, Citi downgraded Cisco to "hold".
Perhaps they should pay the analysts on whether they guess right.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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