Networking technology giant Cisco (NASDAQ:CSCO) will be reporting earnings this Wednesday afternoon. Here’s what to look for.
Cisco met analysts’ revenue expectations last quarter, reporting revenues of $14.67 billion, up 7.6% year on year. It was a mixed quarter for the company, with revenue guidance for next quarter slightly topping analysts’ expectations but billings in line with analysts’ estimates.
Is Cisco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Cisco’s revenue to grow 6.7% year on year to $14.76 billion, a reversal from the 5.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.98 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cisco has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 0.6% on average.
Looking at Cisco’s peers in the it services & other tech segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Applied Digital delivered year-on-year revenue growth of 84.3%, beating analysts’ expectations by 17.6%, and IonQ reported revenues up 222%, topping estimates by 47.8%. Applied Digital traded up 16.1% following the results while IonQ was also up 3.7%.
Read our full analysis of Applied Digital’s results here and IonQ’s results here.
Investors in the it services & other tech segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Cisco is up 6.9% during the same time and is heading into earnings with an average analyst price target of $76.96 (compared to the current share price of $72.11).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.