Cisco Expected to Report Improved Sales
Analysts expect the global provider of computer networking gear to show sales growth of 3% or $9.39 billion and earnings per share of 35 cents, up from earnings per share of 32 cents on revenue of $9.1 billion in the comparable quarter last year.
"While we expect a continued recovery into next year, it is important that expectations do not get ahead of market realities," said Cisco CEO John Chambers (pictured), during the company's first quarter 2010 earnings call. "We could see economic growth bounce up and down in the next 12 months."
"For those areas that we can control or influence, we believe our vision, strategy and execution are in great shape and producing results," he said.
Cisco has been diversifying its business in 2009, with a focus on video, as evidenced by acquisitions of Tandberg ASA, a videoconferencing system maker; Pure Digital Technologies, a consumer camcorder company; and the set-top box business of China's DVN Holdings Limited. Information about the performance of those businesses could yield an early glimpse of how well that strategy is performing for the company.
Shares of the San Jose, Calif. company closed up 1.28% Tuesday, selling for $23.02 per share.