Shares of Cisco Systems (CSCO) rose 7 percent Wednesday morning after the network equipment maker's results surprised investors who were expecting a weak European economy and cuts in enterprise and government spending to hurt the company.
San Jose-based Cisco on Tuesday reported first-quarter results that beat estimates but said its business in Europe would get worse before it gets better.
The company's stock rose to $18.25 in heavy trading, making it the second-most traded on the Nasdaq.
Cisco's results boosted shares of other network gear makers. JDS Uniphase rose 4 percent, F5 Networks 4 percent and Juniper Networks 3 percent.
Cisco's quarterly results stand out as one of the best among technology companies, especially when tech results on an average "have been nothing short of awful," Topeka Capital Markets analyst Brian White said in a note.
"The combination of last night's performance and Cisco's attractive valuation should garner the attention of more value- investors," he said.
Cisco trades at roughly 9 times forward earnings, while its peers in the communications equipment sector trade at a multiple of about 16 on average, according to Thomson Reuters data.