Categories AlphaGraphs, Analysis, Earnings, Technology
Cisco Q4 earnings preview: Here’s everything investors need to know
Being a market leader in its core areas of operation, Cisco Systems (NASDAQ: CSCO) has long been an investors’ favorite. The network gear maker is scheduled to release financial results for the fourth quarter on August 14 at 4:05 pm ET.
Analysts’ consensus earnings estimate for the quarter is $0.82 per share, which represents a 17% year-over-year increase. The forecast comes at the top end of the company’s guidance. Revenues are expected to grow 4% annually to $13.39 billion, which is slightly below the management’s outlook.
The bullish view indicates that the potential impact of the US-China trade war and fluctuations in the global economy on the June-quarter performance will be minimal. Infrastructure Platforms, the core business segment, will continue to be the main growth driver. The growing market for security services, the company’s current area of focus, should add to revenue growth in the to-be-reported quarter and beyond.
You may also like: Cisco-rival Dynatrace files IPO prospectus
As part of its efforts to deliver value to shareholders, the management has been bringing innovation to the pipeline through a new business model that includes software offerings and subscriptions. Complementing the shift in business strategy – transitioning from a products-based firm to a full-fledged solutions provider – the company is making investments in high-growth sectors, including cloud and Internet of Things.
Further, the tech firm is poised to tap the growing demand for its products and services to drive margins in the long term. The average rating given by leading analysts in the past three months is buy, while a slightly lesser number of analysts recommend hold. The consensus price target is around $60.
In the third quarter, strong revenue growth across the board pushed up the top-line to about $13 billion, resulting in double-digit growth in earnings to $0.78 per share.
Cisco’s shares climbed to a nine-year high earlier this year, after gaining steadily over the past twelve months. The stock gained 24% since the beginning of the year, outperforming its peers in the technology and IT industry including Apple (AAPL) and Google (GOOGL). The stock got a major boost from the impressive financial performance in the last quarter.
Most Popular
Earnings Preview: Home Depot’s Q3 report likely to reflect weak consumer demand
The US housing industry has been mostly resilient to headwinds like economic uncertainties so far this year. However, housing activity cooled in recent months as high mortgage rates and inflation
Take-Two Interactive (TTWO) will report Q2 2025 earnings this week, a few points to note
Shares of Take-Two Interactive Software, Inc. (NASDAQ: TTWO) stayed red on Monday. The stock has gained 16% over the past three months. The gaming company is set to report its second
Earnings Summary: Highlights of Loews Corporation’s (L) Q3 2024 report
Loews Corporation (NYSE: L), a diversified company with businesses in the insurance, energy, hospitality, and packaging industries, on Monday reported higher revenue and profit for the third quarter of 2024.