Cisco Systems Inc. Quarterly Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cisco Systems, Inc. (NASDAQ:CSCO) will unveil its latest earnings on Wednesday, August 10, 2011. Cisco Systems, Inc. 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.

Why Apple Needs to Replace Cisco on the Dow 30 Now>>

Cisco Systems, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 32 cents per share, a decline of 15.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 37 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 32 cents during the last month. For the year, analysts are projecting profit of $1.37 per share, a decline of 2.1% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting net income of 37 cents per share against a mean estimate of profit of 32 cents per share.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock >>

Wall St. Revenue Expectations: On average, analysts predict $10.97 billion in revenue this quarter, a rise of 1.2% from the year ago quarter. Analysts are forecasting total revenue of $43 billion for the year, a rise of 7.4% from last year’s revenue of $40.04 billion.

Analyst Ratings: Analysts seem relatively indifferent about Cisco Systems with 23 of 36 analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 4.8% to $10.87 billion in third quarter. The figure rose 6% in the second quarter from the year earlier, climbed 19.2% in the first quarter from the year-ago quarter and 27% in the fourth quarter of the last fiscal year.

The company has now seen net income fall in each of the last two quarters. In the third quarter, net income fell 17.6% from the year earlier quarter, while the figure dropped 17.9% in the second quarter.

Competitors to Watch: Hewlett-Packard Company (NYSE:HPQ), Juniper Networks, Inc. (NYSE:JNPR), Alcatel-Lucent (NYSE:ALU), Microsoft Corporation (NASDAQ:MSFT), Intl. Business Machines Corp. (NYSE:IBM), Extreme Networks, Inc (NASDAQ:EXTR), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Motorola Mobility Hldgs. Inc (NYSE:MMI), NetGear, Inc. (NASDAQ:NTGR), and ADTRAN, Inc. (NASDAQ:ADTN).

Stock Price Performance: During May 10, 2011 to August 4, 2011, the stock price had fallen $2.90 (-16.4%) from $17.72 to $14.82. The stock price saw one of its best stretches over the last year between October 29, 2010 and November 8, 2010 when shares rose for seven-straight days, rising 6.7% (+$1.52) over that span. It saw one of its worst periods between April 6, 2011 and April 19, 2011 when shares fell for 10-straight days, falling 8.1% (-$1.45) over that span. Shares are down $5.26 (-26.2%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock >>