Analysts on Wall Street project that Cisco Systems (CSCO) will announce quarterly earnings of $1.02 per share in its forthcoming report, representing an increase of 8.5% year over year. Revenues are projected to reach $15.12 billion, increasing 8.1% from the same quarter last year.
The current level reflects no revision 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.
In light of this perspective, let's dive into the average estimates of certain Cisco metrics that are commonly tracked and forecasted by Wall Street analysts.
The combined assessment of analysts suggests that 'Revenue- Product- Networking' will likely reach $7.74 billion. The estimate points to a change of +13% from the year-ago quarter.
The consensus among analysts is that 'Revenue- Product- Observability' will reach $298.26 million. The estimate points to a change of +7.7% from the year-ago quarter.
Analysts expect 'Revenue- Services' to come in at $3.85 billion. The estimate indicates a year-over-year change of +2.6%.
The average prediction of analysts places 'Revenue- Product- Security' at $2.15 billion. The estimate points to a change of +2% from the year-ago quarter.
Analysts predict that the 'Revenue- Product' will reach $11.26 billion. The estimate points to a change of +10.1% from the year-ago quarter.
It is projected by analysts that the 'Revenue- Product- Collaboration' will reach $984.25 million. The estimate suggests a change of -1.2% year over year.
Analysts' assessment points toward 'Non-Gaap Gross Margin- Service' reaching $2.73 billion. The estimate compares to the year-ago value of $2.69 billion.
The collective assessment of analysts points to an estimated 'Non-Gaap Gross Margin- Product' of $7.56 billion. The estimate is in contrast to the year-ago figure of $6.92 billion.
View all Key Company Metrics for Cisco here>>>
Over the past month, Cisco shares have recorded returns of +11.4% versus the Zacks S&P 500 composite's -1.5% 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 >>>> .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cisco Systems, Inc. (CSCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
