Are You Expecting This From Cisco Systems?

Updated

Cisco Systems (NAS: CSCO) is expected to report Q4 earnings on Aug. 15. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Cisco Systems' revenues will increase 3.8% and EPS will grow 12.5%.

The average estimate for revenue is $11.62 billion. On the bottom line, the average EPS estimate is $0.45.


Revenue details
Last quarter, Cisco Systems reported revenue of $11.59 billion. GAAP reported sales were 6.6% higher than the prior-year quarter's $10.87 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.48. GAAP EPS of $0.40 for Q3 were 21% higher than the prior-year quarter's $0.33 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 61.9%, 50 basis points worse than the prior-year quarter. Operating margin was 24.6%, 310 basis points better than the prior-year quarter. Net margin was 18.7%, 210 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $45.98 billion. The average EPS estimate is $1.83.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 10,425 members out of 10,939 rating the stock outperform, and 514 members rating it underperform. Among 1,944 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,857 give Cisco Systems a green thumbs-up, and 87 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cisco Systems is outperform, with an average price target of $22.85.

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The article Are You Expecting This From Cisco Systems? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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