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Countdown to Cisco (CSCO) Q4 Earnings: A Look at Estimates Beyond Revenue and EPS
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The upcoming report from Cisco Systems (CSCO - Free Report) is expected to reveal quarterly earnings of $0.85 per share, indicating a decline of 25.4% compared to the year-ago period. Analysts forecast revenues of $13.52 billion, representing a decrease of 11.1% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.2% 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 announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Cisco metrics that Wall Street analysts commonly model and monitor.
Analysts predict that the 'Revenue- Product- Networking' will reach $6.76 billion. The estimate indicates a change of -16.9% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenue- Services' should come in at $3.73 billion. The estimate indicates a year-over-year change of +5.1%.
Analysts' assessment points toward 'Revenue- Product- Security' reaching $1.64 billion. The estimate indicates a year-over-year change of +65.8%.
Analysts expect 'Revenue- Product' to come in at $9.66 billion. The estimate suggests a change of -17.1% year over year.
The consensus among analysts is that 'Revenue- Product- Collaboration' will reach $1.02 billion. The estimate indicates a year-over-year change of -0.2%.
Analysts forecast 'Non-Gaap Gross Margin- Service' to reach $2.55 billion. The estimate is in contrast to the year-ago figure of $2.40 billion.
The consensus estimate for 'Non-Gaap Gross Margin- Product' stands at $6.34 billion. The estimate is in contrast to the year-ago figure of $7.63 billion.
Over the past month, shares of Cisco have returned -2% versus the Zacks S&P 500 composite's -4.5% change. Currently, CSCO carries a Zacks Rank #2 (Buy), suggesting that it may outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Countdown to Cisco (CSCO) Q4 Earnings: A Look at Estimates Beyond Revenue and EPS
The upcoming report from Cisco Systems (CSCO - Free Report) is expected to reveal quarterly earnings of $0.85 per share, indicating a decline of 25.4% compared to the year-ago period. Analysts forecast revenues of $13.52 billion, representing a decrease of 11.1% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.2% 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 announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Cisco metrics that Wall Street analysts commonly model and monitor.
Analysts predict that the 'Revenue- Product- Networking' will reach $6.76 billion. The estimate indicates a change of -16.9% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenue- Services' should come in at $3.73 billion. The estimate indicates a year-over-year change of +5.1%.
Analysts' assessment points toward 'Revenue- Product- Security' reaching $1.64 billion. The estimate indicates a year-over-year change of +65.8%.
Analysts expect 'Revenue- Product' to come in at $9.66 billion. The estimate suggests a change of -17.1% year over year.
The consensus among analysts is that 'Revenue- Product- Collaboration' will reach $1.02 billion. The estimate indicates a year-over-year change of -0.2%.
Analysts forecast 'Non-Gaap Gross Margin- Service' to reach $2.55 billion. The estimate is in contrast to the year-ago figure of $2.40 billion.
The consensus estimate for 'Non-Gaap Gross Margin- Product' stands at $6.34 billion. The estimate is in contrast to the year-ago figure of $7.63 billion.
View all Key Company Metrics for Cisco here>>>
Over the past month, shares of Cisco have returned -2% versus the Zacks S&P 500 composite's -4.5% change. Currently, CSCO carries a Zacks Rank #2 (Buy), suggesting that it may outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>