What to Expect From Cisco Earnings After the Close
Cisco seems to be at a fork in the road with this earnings report. On one hand a strong showing could see a major breakout for shares, while a loss might reveal that Cisco will never recover to its dominance…
Cisco Systems Inc. (NASDAQ: CSCO) is scheduled to release its most recent quarterly results after the markets close on Wednesday. Cisco seems to be at a fork in the road with this earnings report. On one hand a strong showing could see a major breakout for shares, while a loss might reveal that Cisco will never recover to its dominance of the late 1990s.
The consensus estimates from Thomson Reuters are $0.60 in earnings per share (EPS) and $12.11 billion in revenue. The fiscal first-quarter of last year reportedly had $0.61 in EPS on revenue of $12.35 billion.
It’s worth pointing out that Cisco has moved beyond its business of routers and switches and effectively into cloud and security offerings. While this expansion is a natural move for the business, it does put Cisco in direct competition with some of the most powerful, deep-pocketed companies in the tech sector.
Looking at the dividend, Cisco has managed to keep raising that payout over time, and it still yields an impressive 3.4% or so. Investors do have to keep in mind that Cisco has now paid out almost $5.00 per share in dividends going back to the first substantial dividend of 2011. That same payout has also nearly risen fourfold since then.
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24/7 Wall St. took two charts from the trailing 10 years, and Cisco has greatly underperformed from the selling depths of the market in 2009 and in recovering from its pre-recession peak. The Nasdaq has greatly outpaced Cisco, and this leaves some questions. If the likes of Intel and Microsoft have recaptured their highs from the dot-com and tech bubble of 1999 and 2000, why is Cisco at only half its value from then?
Considering this, a win in this earnings report could see a major breakout for shares. On the other hand, a loss could signal to more skeptical investors that Cisco might never recover.
Shares of Cisco were last seen at $34.10, with a consensus analyst price target of $35.73 and a 52-week range of $29.12 to $34.60.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
