A Primer to Cisco’s Earnings on Deck
Technological major and economy bellwether CISCO Systems Inc (NASDAQ:CSCO) reports third quarter results after hours today. Here’s our primer on what to expect:
Over the past year or so, Cisco has been clawing back a recovery, driven by CEO John Chambers’ efforts to cut costs and redefining the company’s focus. The stock market recognized this, pushing up Cisco’s shares 60 percent between August and March, but shares began to retreat thereafter on concerns over the global economic outlook and stronger competition. Given these worries, a close ear should be given to what Chambers has to say on the conference call.
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The market is betting on an improvement in earnings per share over the previous year. Analysts expect earnings of 47 cents a share, excluding items, on revenues of $11.6 billion, according to a survey conducted by FactSet. Last year, the company reported earnings of 42 cents a share, excluding items, on revenues of $10.9 billion.
On the outlook for the subsequent quarter, analysts are of the view that Cisco could forecast earnings per share of 49 cents on revenues of $12 billion.
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