Cisco Systems Stock Takes a Hit Despite Strong Earnings Report

Cisco Systems, Inc.'s (NASDAQ:CSCO) stock price took a hit on Thursday, opening at $110.55 after its latest earnings report. The network equipment provider reported quarterly revenue of $17.25 billion, beating analysts' expectations of $16.84 billion.

The company's adjusted earnings per share (EPS) came in at $1.22, exceeding the consensus estimate of $1.17. This marked a significant increase from the same period last year, when EPS was $0.99.

Despite this strong performance, some analysts are cautioning that gross-margin pressure could be a concern for Cisco in the coming quarters. Margins fell to around 66.3% and are expected to remain around 65-66% in the next quarter, partly due to higher memory costs and hardware pricing.

Institutional investors own approximately 73.33% of Cisco Systems' stock, with Patrick Mauro Investment Advisor INC. being one of its largest shareholders. The investment advisor sold 24,489 shares of CSCO during the second quarter, reducing its position in the company by 32.0%. At the end of the most recent quarter, Cisco Systems accounted for 3.1% of Patrick Mauro Investment Advisor INC.'s investment portfolio.