Back to top

Image: Bigstock

What Analyst Projections for Key Metrics Reveal About Cisco (CSCO) Q1 Earnings

Read MoreHide Full Article

Wall Street analysts forecast that Cisco Systems (CSCO - Free Report) will report quarterly earnings of $1.03 per share in its upcoming release, pointing to a year-over-year increase of 19.8%. It is anticipated that revenues will amount to $14.61 billion, exhibiting an increase of 7.2% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

That said, let's delve into the average estimates of some Cisco metrics that Wall Street analysts commonly model and monitor.

Analysts forecast 'Revenue- Products' to reach $11.12 billion. The estimate points to a change of +8.5% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Revenue- Services' of $3.48 billion. The estimate points to a change of +2.9% from the year-ago quarter.

The average prediction of analysts places 'Revenue- Product-Optimized Application Experiences' at $213.71 million. The estimate indicates a year-over-year change of +10.7%.

Based on the collective assessment of analysts, 'New Products- End-to-End Security' should arrive at $999.41 million. The estimate suggests a change of +2.9% year over year.

According to the collective judgment of analysts, 'Revenue- Product-Internet for the Future' should come in at $1.30 billion. The estimate points to a change of -1.1% from the year-ago quarter.

Analysts expect 'Revenue- Product-Secure, Agile Networks' to come in at $7.58 billion. The estimate indicates a year-over-year change of +13.4%.

Analysts' assessment points toward 'Non-Gaap Gross profit- Service' reaching $2.36 billion. The estimate compares to the year-ago value of $2.33 billion.

Analysts predict that the 'Non-Gaap Gross profit- Product' will reach $7.19 billion. The estimate compares to the year-ago value of $6.25 billion.

The consensus estimate for 'Cost of sales- Service' stands at $1.20 billion. Compared to the current estimate, the company reported $1.11 billion in the same quarter of the previous year.

It is projected by analysts that the 'Cost of sales- Product' will reach $4.18 billion. The estimate compares to the year-ago value of $4.18 billion.

View all Key Company Metrics for Cisco here>>>

Cisco shares have witnessed a change of -3.4% in the past month, in contrast to the Zacks S&P 500 composite's +1.8% move. With a Zacks Rank #3 (Hold), CSCO is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cisco Systems, Inc. (CSCO) - free report >>

Published in