S&P 500 (NYSE:SPY) component Cisco Systems (NASDAQ:CSCO) will unveil its latest earnings on today, Tuesday, November 13, 2012. Cisco Systems is a multinational corporation engaged in the design, manufacturing, and sales of Internet Protocol-based consumer electronics, networking, and other services related to communications and information technology.
Cisco Systems Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 41 cents per share, a rise of 7.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 40 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 41 cents during the last month. Analysts are projecting profit to rise by 4.9% versus last year to $1.72.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting profit of 42 cents per share against a mean estimate of net income of 40 cents per share.
Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now
A Look Back: In the fourth quarter of the last fiscal year, profit rose 55.6% to $1.92 billion (36 cents a share) from $1.23 billion (23 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.4% to $11.69 billion from $11.2 billion.
Stock Price Performance: Between September 12, 2012 and November 7, 2012, the stock price had fallen $1.87 (-9.8%), from $19.08 to $17.21. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 9, 2012, when shares rose for six straight days, increasing 12.5% (+$1.96) over that span. It saw one of its worst periods between July 3, 2012 and July 12, 2012 when shares fell for seven straight days, dropping 6.8% (-$1.17) over that span.
Wall St. Revenue Expectations: Analysts predict a rise of 4.8% in revenue from the year-earlier quarter to $11.8 billion.
This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 43.5% in the second quarter of the last fiscal year and 19.8% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 4.7% in the first quarter of the last fiscal year, 10.8% in the second quarter of the last fiscal year and 6.6% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.
Analyst Ratings: With 19 analysts rating the stock a buy, none rating it a sell and 13 rating the stock a hold, there are indications of a bullish stance by analysts.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.49 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.57 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3.5% to $17.73 billion while assets rose 1.2% to $61.93 billion.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories: