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What Analyst Projections for Key Metrics Reveal About Cisco (CSCO) Q2 Earnings

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Wall Street analysts expect Cisco Systems (CSCO - Free Report) to post quarterly earnings of $0.91 per share in its upcoming report, which indicates a year-over-year increase of 4.6%. Revenues are expected to be $13.86 billion, up 8.4% from the year-ago quarter.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. 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 investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

In light of this perspective, let's dive into the average estimates of certain Cisco metrics that are commonly tracked and forecasted by Wall Street analysts.

Analysts' assessment points toward 'Revenue- Product- Networking' reaching $6.66 billion. The estimate suggests a change of -5.9% year over year.

The consensus estimate for 'Revenue- Services' stands at $3.73 billion. The estimate points to a change of +4.8% from the year-ago quarter.

The combined assessment of analysts suggests that 'Revenue- Product- Security' will likely reach $1.99 billion. The estimate suggests a change of +104.2% year over year.

The average prediction of analysts places 'Revenue- Product' at $9.92 billion. The estimate indicates a change of +7.4% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Revenue- Product- Collaboration' of $1.00 billion. The estimate indicates a year-over-year change of +1.5%.

Analysts forecast 'Non-Gaap Gross Margin- Service' to reach $2.64 billion. Compared to the current estimate, the company reported $2.51 billion in the same quarter of the previous year.

Analysts expect 'Non-Gaap Gross Margin- Product' to come in at $6.56 billion. The estimate compares to the year-ago value of $6.02 billion.

View all Key Company Metrics for Cisco here>>>

Over the past month, shares of Cisco have returned +5.2% versus the Zacks S&P 500 composite's +1.9% 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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