Analysts on Wall Street project that Cisco Systems (CSCO) will announce quarterly earnings of $0.91 per share in its forthcoming report, representing an increase of 3.4% year over year. Revenues are projected to reach $14.05 billion, increasing 10.6% from the same quarter last year.
The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let's delve into the average projections of some Cisco metrics that are commonly tracked and projected by analysts on Wall Street.
The consensus estimate for 'Revenue- Product' stands at $10.06 billion. The estimate indicates a change of +11.5% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenue- Services' will likely reach $3.82 billion. The estimate suggests a change of +3.8% year over year.
Analysts' assessment points toward 'Revenue- Product- Security' reaching $2.19 billion. The estimate indicates a change of +68.3% from the prior-year quarter.
Analysts forecast 'Revenue- Product- Networking' to reach $6.76 billion. The estimate indicates a year-over-year change of +3.6%.
The consensus among analysts is that 'Revenue- Product- Collaboration' will reach $1.00 billion. The estimate points to a change of +1.6% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Non-Gaap Gross Margin- Service' of $2.71 billion. Compared to the current estimate, the company reported $2.54 billion in the same quarter of the previous year.
According to the collective judgment of analysts, 'Non-Gaap Gross Margin- Product' should come in at $6.65 billion. Compared to the current estimate, the company reported $6.04 billion in the same quarter of the previous year.
View all Key Company Metrics for Cisco here>>>
Over the past month, Cisco shares have recorded returns of +5.5% versus the Zacks S&P 500 composite's +13.7% 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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