Cisco Meets, But Mum on Guidance (CSCO)

Cisco Systems, Inc. (NASDAQ: CSCO) has just posted earnings of $0.38 non-GAAP EPS on revenues of $9.83 Billion.  First Call had estimates of $0.38 EPS and $9.79 billion in revenues. Net earnings after charges were $0.33, but Wall Street is still using that $0.38 numbers. 

The company did not offer guidance, but Chambers will likely issue that in his conference call.  Next quarter estimates are $0.39 EPS and $10.2 billion in revenues. Estimates for fiscal year July 2008 are $1.59 and $40.34 billion in revenues.

Chambers noted: "As we enter the second half of the fiscal year, our innovation pipeline is in excellent shape, our balanced product momentum across core and advanced technologies continues to be solid, and execution against our long-term strategy remains unwavering. This constant evolution of moving into new markets and product adjacencies, alongside our core operational and financial strength, is the hallmark of Cisco’s ability to act upon key market transitions."  Unfortunately, this doesn’t offer any real meat for traders to hang their hats on either way.

Shares closed down 0.7% at $23.08 in regular trading and after the report shares were just trading  down marginally at $23.00in after-hours trading activity.  The 52-week trading range is $22.30 to $34.24.

We had already noted whether or not this one was way oversold before, and after today it looks like traders are holding off for that eagerly-anticipated guidance.  Until then, this is VERY incomplete reporting.

Jon C. Ogg
February 6, 2008