In its upcoming report, Cisco Systems (CSCO) is predicted by Wall Street analysts to post quarterly earnings of $0.98 per share, reflecting an increase of 7.7% compared to the same period last year. Revenues are forecasted to be $14.78 billion, representing a year-over-year increase of 6.8%.
The current level reflects a downward revision of 0.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Cisco metrics that Wall Street analysts commonly model and monitor.
The combined assessment of analysts suggests that 'Revenue- Product- Networking' will likely reach $7.34 billion. The estimate indicates a year-over-year change of +8.7%.
The collective assessment of analysts points to an estimated 'Revenue- Product- Observability' of $288.48 million. The estimate points to a change of +11.8% from the year-ago quarter.
It is projected by analysts that the 'Revenue- Services' will reach $3.80 billion. The estimate indicates a change of +2% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenue- Product- Security' should arrive at $2.24 billion. The estimate points to a change of +11% from the year-ago quarter.
Analysts predict that the 'Revenue- Product' will reach $10.95 billion. The estimate indicates a year-over-year change of +8.3%.
The consensus estimate for 'Revenue- Product- Collaboration' stands at $1.09 billion. The estimate indicates a year-over-year change of +0.2%.
Analysts forecast 'Non-Gaap Gross Margin- Service' to reach $2.69 billion. Compared to the current estimate, the company reported $2.62 billion in the same quarter of the previous year.
The average prediction of analysts places 'Non-Gaap Gross Margin- Product' at $7.38 billion. The estimate compares to the year-ago value of $6.97 billion.
View all Key Company Metrics for Cisco here>>>
Over the past month, Cisco shares have recorded returns of +1.5% versus the Zacks S&P 500 composite's -0.2% change. Based on its Zacks Rank #3 (Hold), CSCO will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Cisco Systems, Inc. (CSCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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