What to Expect When Cisco Reports After the Close
Cisco is scheduled to report its fiscal second-quarter financial results after the markets close on Wednesday, and year-on-year growth is expected on the top and bottom lines.
Cisco Systems Inc. (NASDAQ: CSCO | CSCO Price Prediction) is scheduled to report its fiscal second-quarter financial results after the markets close on Wednesday. Thomson Reuters consensus estimates are calling for $0.72 in earnings per share (EPS) and $12.41 billion in revenue. The same period of last year reportedly had $0.63 in EPS and $11.89 billion in revenue.
In December, Cisco announced that it would be making a key acquisition. This deal is expected to close in the third quarter of Cisco’s fiscal 2019, and it is subject to customary closing conditions and required regulatory approvals.
Cisco is acquiring the privately held Luxtera, a semiconductor company that uses silicon photonics to build integrated optics capabilities for webscale and enterprise data centers, service provider market segments and other customers. Luxtera’s technology, design and manufacturing innovation significantly improve chip scale and performance while lowering costs.
Cisco plans to incorporate Luxtera’s technology across its intent-based networking portfolio, spanning enterprise, data center and service provider markets.
[nativounit]
Under the terms of the agreement, Cisco will pay $660 million in cash and assumed equity awards for the acquisition of Luxtera.
Excluding Wednesday’s move, Cisco had outperformed the broad markets, with its stock up about 10.5% year to date. Over the past 52 weeks, the stock was up 21%.
A few analysts weighed in on Cisco ahead of the report:
- Morgan Stanley rates it Equal Weight with a $49 price target.
- Robert Baird has a Buy rating with a $53 price target.
- Credit Suisse has a Hold rating and a $44 price target.
- Argus has a Buy rating with a $55 price target.
- Nomura has a Neutral rating and a $50 target.
- Wolfe Research has an Outperform rating.
Shares of Cisco were last seen down about 1% at $47.40 on Wednesday, in a 52-week range of $40.19 to $49.47. The consensus price target is $52.64.
[recirclink id=527115]
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
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.
