Cisco Systems Earnings Preview: Analysts Expect Rising Revenue, Falling EPS

Cisco Systems (NASDAQ: CSCO) announces its next round of earnings this Wednesday, August 10, 2011. Here's Benzinga's advanced look at Cisco Systems' fourth quarter earnings report.

Earnings and Revenue:

Wall Street expects an EPS of 32 cents/share and revenues of $10.97 billion. Investors will be keen to see how this quarter's numbers stack up against the year-ago quarter's positive EPS of 38 cents/share on revenues of $10.84 billion. We'll have to wait for Wednesday to see if Cisco Systems reports a decline in EPS and a small boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

At last check, shares of Cisco Systems were trading at $14.82. Since January 1st, shares of Cisco Systems have declined 26.2%. For a full 12 months, the return has declined by 31.6%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Cisco Systems is a Hold. The strength of this rating has crept upwards over the past three months.

Competitors:

Wondering how Cisco Systems compares to rivals in the same sector? Here are a few of the company's peers.

• ADTRAN (NASDAQ: ADTN): Moderate Buy with a $0.56 recent quarter EPS
• Alcatel-Lucent (ADR (NYSE: ALU): Hold with a $0.05 recent quarter EPS
• Telefonaktiebolaget LM Ericsson (ADR (NASDAQ: ERIC): Hold with a $0.21 recent quarter EPS
• Extreme Networks (NASDAQ: EXTR): Hold with a $0.01 recent quarter EPS

Cisco Systems is in the computer networks industry, which has experienced price/earnings growth of 3.8%.

Finally, a description of the company's main areas of operation: Cisco Systems is a multinational corporation engaged in the design, manufacturing and sales of Internet Protocol-based consumer electronics, networking, and other services related to communications and information technology.

Take Action:

Now that you've gotten an advanced peak at Cisco Systems' upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

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