Cisco Earnings on the Horizon

S&P 500 (NYSE:SPY) component Cisco Systems (NASDAQ:CSCO) will unveil its latest earnings on Wednesday, August 15, 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 analyst estimate is for profit of 41 cents per share, a rise of 17.1% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 16.4% compared to last year’s $1.63.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of 42 cents per share against a mean estimate of profit of 41 cents per share.

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A Look Back: In the third quarter, profit rose 19.8% to $2.17 billion (40 cents a share) from $1.81 billion (33 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6.6% to $11.59 billion from $10.87 billion.

Stock Price Performance: From July 12, 2012 to August 10, 2012, the stock price rose $1.16 (7.08%), from $16.38 to $17.54. 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: On average, analysts predict $11.62 billion in revenue this quarter, a rise of 3.8% from the year-ago quarter. Analysts are forecasting total revenue of $45.98 billion for the year, a rise of 6.4% from last year’s revenue of $43.22 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 3.3% in the fourth quarter of the last fiscal year, 4.7% in the first quarter and 10.8% in the second quarter before increasing again in the third quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 4.8% for the last four quarters.

Analyst Ratings: With 17 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. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.57 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.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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