What to Expect From Cisco Earnings After the Close

By Chris Lange Updated Jan 12, 6:17AM EST · Published Nov 15, 10:25AM EST

What to Expect From Cisco Earnings After the Close — © Thinkstock

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?

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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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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.