Cisco shares gain the most in two weeks on Wednesday, company’s quarterly earnings top market expectations

Cisco Systems Incs (CSCO) adjusted earnings per share outstripped market expectations during the second quarter ended on January 31st, largely supported by sound demand for security products.

Cisco shares closed higher for a fifth straight session on Wednesday, while also logging their largest daily increase since February 2nd. The stock went up 1.58% ($0.51) to $32.82, after touching an intraday high of $32.84, or a level not seen since November 7th 2007 ($34.09). In the week ended on February 12th the shares of the technological company added 0.61% to their market value compared to a week ago, which marked a fourth consecutive period of gains. The stock has extended its advance to 6.84% so far during the current month, following a 1.65% surge in January. The latter has been a second straight month of gains. For the entire 2016, the shares of the NASDAQ-listed company gained 11.27%.

Earnings per share, excluding special items, were reported at $0.57 during the quarter ended on January 31st. The median estimate by analysts had pointed to earnings of $0.56 per share, according to Thomson Reuters I/B/E/S.

Ciscos net income, however, shrank to $2.35 billion (47 cents per share) during the second quarter ended on January 31st from $3.15 billion (62 cents per share) during the same period a year ago.

The tech company now projects its adjusted earnings per share to be within the range between $0.57 and $0.59 during the present quarter, which meets analysts median forecast.

Ciscos revenue generated by its security business was reported to have grown 14% to $528 million during the second quarter, a figure which topped market consensus ($519.1 million).

At the same time, revenue generated by the companys legacy switching business shrank 5% to $3.31 billion during the same period. Analysts on average had anticipated a lesser drop, to $3.38 billion.

Ciscos total revenue was reported to have dropped for a fifth consecutive quarterly period, by 2.9%, to reach $11.58 billion.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Cisco stock are presented as follows:

R1 – $32.87
R2 – $32.92
R3 (Range Resistance – Sell) – $32.97
R4 (Long Breakout) – $33.12
R5 (Breakout Target 1) – $33.30
R6 (Breakout Target 2) – $33.38

S1 – $32.77
S2 – $32.72
S3 (Range Support – Buy) – $32.67
S4 (Short Breakout) – $32.52
S5 (Breakout Target 1) – $32.34
S6 (Breakout Target 2) – $32.26

By using the traditional method of calculation, the weekly levels of importance for Cisco Systems Inc (CSCO) are presented as follows:

Central Pivot Point – $31.44
R1 – $31.76
R2 – $32.01
R3 – $32.33
R4 – $32.65

S1 – $31.19
S2 – $30.87
S3 – $30.62
S4 – $30.37