Networking technology giant Cisco (NASDAQ:CSCO) will be reporting earnings this Wednesday after market close. Here’s what to look for.
Cisco beat analysts’ revenue expectations last quarter, reporting revenues of $15.84 billion, up 12% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS guidance for next quarter estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Is Cisco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Cisco’s revenue to grow 14.7% year on year, improving from the 7.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Cisco has a history of exceeding Wall Street’s expectations.
Looking at Cisco’s peers in the it services & other tech segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Applied Digital delivered year-on-year revenue growth of 407%, beating analysts’ expectations by 148%, and Gartner reported flat revenue, topping estimates by 1.8%. Applied Digital’s stock price was unchanged after the resultswhile Gartner was up 23%.
Read our full analysis of Applied Digital’s results here and Gartner’s results here.
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 6.5% on average over the last month. Cisco is up 3.1% during the same time and is heading into earnings with an average analyst price target of $132.59 (compared to the current share price of $122.89).
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