Cisco Systems Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cisco Systems, Inc. (NASDAQ:CSCO) will unveil its latest earnings on Wednesday, February 8, 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, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 38 cents per share, a rise of 22.6% 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 36 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 38 cents during the last month. Analysts are projecting profit to rise by 12.1% versus last year to $1.57.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 4 cents, reporting net income of 38 cents per share against a mean estimate of profit of 34 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 7.9% in revenue from the year-earlier quarter to $11.23 billion.

Analyst Ratings: Analysts are bullish on Cisco Systems as 15 analysts rate it as a buy, none rate it as a sell and 15 rate it as a hold.

A Look Back: In the first quarter, profit fell 7.9% to $1.78 billion (33 cents a share) from $1.93 billion (34 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 4.7% to $11.26 billion from $10.75 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 3.3% in the fourth quarter of the last fiscal year from the year earlier, climbed 4.8% in the third quarter of the last fiscal year from the year-ago quarter and 6% in the second quarter of the last fiscal year.

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 19.9% over the past four quarters. The quarter hit the hardest was the fourth quarter of the last fiscal year, that saw a 36.3% drop.

Stock Price Performance: During November 4, 2011 to February 2, 2012, the stock price had risen $1.83 (10.2%) from $17.97 to $19.80. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 1, 2011 when shares rose for six-straight days, rising 6.2% (+92 cents) 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% (-$1.44) over that span.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com