Cisco Systems had an incredible time in the market toward the end of last week, and for good reason. The company recently reported its earnings for the third fiscal quarter of 2016, beating analyst expectations. What's more is that the company also released incredibly strong guidance. Today, we'll talk about what we saw from the report, how the market reacted to the news, what we can expect to see from Cisco Systems moving forward, and how binary options traders can take advantage of the trends.

Cisco Systems Reports Strong Quarterly Results

As mentioned above, Cisco Systems recently reported its quarterly results for the third fiscal quarter of 2016. While the report was expected, it wasn't expected that the company would do so well. Here's what we saw…

  • Earnings Per Share – In terms of earnings per share, Cisco Systems did incredibly well. During the third quarter, analysts expected that the company would generate earnings in the amount of $0.55 per share. However, the company reported its earnings $0.02 ahead of expectations at $0.57 per share.

  • Revenue – Cisco Systems definitely did not disappoint with regard to revenue either. During the quarter, analysts expected that the company would generate revenue in the amount of $11.97 billion. However, the company reported that revenue for the quarter actually came in at $12 billion.

  • Guidance – As if strong revenue and strong earnings wasn't enough to excite investors, the company also reported solid guidance for the fourth fiscal quarter of 2016. During the quarter, analysts are expecting that the company will generate earnings in the amount of $0.58 per share. However, Cisco Systems is expecting that earnings for the quarter will come in between $0.59 and $0.61 per share.

Along with the release of the strong earnings report, Chuck Robbins, CEO at Cisco Systems offered positive comments. Here's what he had to say

We delivered a strong Q3, executing well despite the challenging environment… I'm pleased with our performance today as well as the progress we're making in transitioning our business to a more software and subscription focus, which we'll continue to apply across our entire portfolio.”

How The Market Reacted To The News

As binary options traders, one of the first things that we learn when we get started is that the news moves the market. Any time there is positive news released with regard to a publicly traded company, we can expect to see gains in the value of the stock associated with the news. In this particular case, the earnings report released by Cisco Systems was overwhelmingly positive. As a result, we've seen a positive reaction in the market. This positivity continued through Friday, when the stock closed at $27.97 per share after a gain of $0.40 per share or 1.45% during the trading session.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Cisco Systems. Through their third quarter earnings report, the company has proven its ability to grow even in challenging times for its industry. With strong guidance ahead, investors will likely continue to push the value of the stock upward.

How Binary Options Traders Can Take Advantage Of The Trends

As binary options traders, it is our job to find trends and take advantage of those trends by making trades that predict future directional movements. In this particular case, this job is relatively simple. Cisco Systems is likely to continue to head upward. As a result, binary options traders should be watching for strong call option opportunities in order to take advantage of the upward movement.

What Do You Think?

Where do you think Cisco Systems is headed and why? Let us know your opinion in the comments below!

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