Cisco Systems Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cisco Systems, Inc. (NASDAQ:CSCO) will unveil its latest earnings on Wednesday, May 9, 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 analyst estimate is for profit of 41 cents per share, a rise of 10.8% from the company’s actual earnings for the year-ago quarter. 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 17.1% compared to last year’s $1.64.

Past Earnings Performance: Last quarter, the company beat estimates by 5 cents, coming in at net income of 43 cents a share versus the estimate of profit of 38 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: Analysts predict a rise of 6.5% in revenue from the year-earlier quarter to $11.58 billion.

Analyst Ratings: Analysts are optimistic about this stock, with 15 analysts rating it as a buy, none rating it as a sell and 14 rating it as a hold.

A Look Back: In the second quarter, profit rose 43.5% to $2.18 billion (40 cents a share) from $1.52 billion (27 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 10.8% to $11.53 billion from $10.41 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 4.8% in the third quarter of the last fiscal year, 3.3% in the fourth quarter of the last fiscal year and 4.7% in the first quarter before increasing again in the second quarter.

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. Net income fell in the third quarter of the last fiscal year, the fourth quarter of the last fiscal year and the first quarter before snapping that run with a profit increase in the second quarter.

Stock Price Performance: Between April 4, 2012 and May 3, 2012, the stock price dropped 64 cents (-3.1%), from $20.36 to $19.72. 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, increasing 6.3% (+92 cents) over that span. It saw one of its worst periods between November 15, 2011 and November 23, 2011 when shares fell for seven straight days, dropping 8.9% (-$1.69) over that span.

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

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