What to Expect from Cisco Systems Stock After Earnings

Analysts and options traders are bearish ahead of the event

Deputy Editor
Nov 10, 2022 at 12:15 PM
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Cisco Systems Inc (NASDAQ:CSCO) is gearing up to release its fiscal first-quarter earnings report, due out after the close Wednesday, Nov. 16. Over the last two years, CSCO has experienced mostly positive post-earnings sessions, though the shares did lose 13.7% following its May report. The security averaged a 5.3% swing, regardless of direction, the day after its last eight reports, and this time around the options pits are pricing in a larger 7.2% shift. 

Though last seen 2.6% higher to trade at $45.08, the security is pulling away from earlier gains. Cisco Systems stock's 160-day capped today's surge, which isn't anything new, as the trendline stymied multiple rally attempts over the course of 2022. Year-to-date, CSCO sports a 29.2% deficit. 

CSCO Chart 2 November 102022

Most analysts covering Cisco Systems stock are pessimistic, though there are a few holdouts. Of the 20 in coverage, eight call the equity a "buy" or better, while 12 say "hold" or worse.

Options traders favor puts at the moment. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CSCO sports a 50-day put/call volume ratio that ranks in the 90th percentile of its annual range, indicating a healthier-than-usual appetite for bearish bets in the last 10 weeks.


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