John Chambers’ positive comments about sales for Cisco Systems helped vault the firm’s stock to a 19-month high at midday.
Chambers, speaking at a technology conference in Boston, said that “August was a little above expectations” in an interview that was web cast live.
“Companies are beginning to take their foot off the brakes in certain industries around the world,” Chambers said at one point.
Nasdaq stocks in general have soared in recent months as the tech sector seems to be emerging from the doldrums of the past three years.
The comments sent Cisco stock up 4 percent to $20.42, a 19-month high. Just a year ago, Cisco stock was trading under $9.
Cisco (Nasdaq: CSCO finished the day up 3.4 percent, or 67 cents, to close at $20.26.
“It’s early to tell if this is sustainable or not,” he was quoted as saying by wire service reports.”The key is what sustaining power do we have and how strong will it be,” he said.
Reuters research predicts earnings of 15 cents a share this quarter — the first quarter of Cisco’s fiscal year.