What's Coming For Cisco? The Street Weighs In

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Cisco Systems, Inc. CSCO is scheduled to announce its fourth-quarter and full year financial results on August 12, after the market closes. According to Estimize, the Street is modeling consensus earnings of $0.56 per share on revenue of $12.663 billion, marginally up from the EPS of $0.57 on sales of $12.357 billion reported in the fourth quarter of 2014, and from the EPS of $0.54 on revenue of $12.137 billion registered last quarter.

The crowd is slightly more bullish and projects consensus earnings of $0.57 per share on revenue of $12.642 billion.

Oppenheimer’s Thoughts

In a report issued Friday, Oppenheimer analysts Ittai Kidron, Michael Leonard and George Iwanyc reiterated an Outperform rating and $32.00 price target on the stock, assuring they “expect a strong finish to the year.”

The firm’s U.S. and European channel checks suggest there is plenty of upside potential to the company’s fourth-quarter estimates, driven by strength with enterprise clients in both geographies. October checks were solid as well, even in spite of the typically weak seasonality.

The report noted that, “while emerging markets remain troubled (if not worse),” the analysts think these headwinds are largely incorporated in the management’s guidance. Similarly, they're not preoccupied about FX headwinds, since movements were quite modest this quarter.

The experts’ confidence is “also boosted by Cisco's cost reduction initiatives which suggest that new CEO Chuck Robbins plans to be more aggressive on costs and keeping Cisco more focused.”

Overall, Oppenheimer expects another quarter of robust momentum with several drivers supporting a positive outlook.

For the fourth quarter, the firm is modeling earnings of $0.56 per share on revenue of $12.7 billion.

For the full year, the estimate stands at $2.18 per share and $49 billion.

For 2016, analysts at Oppenheimer anticipate EPS of $2.25 on sales of $50.8 billion.

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Posted In: Analyst ColorPreviewsCrowdsourcingAnalyst RatingsTrading IdeasGeneralGeorge IwanycIttai KidronMichael LeonardOppenheimer
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