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

Cisco Systems (NASDAQ: CSCO) announces its next round of earnings this Wednesday, November 9, 2011. Here's Benzinga's essential guide to Cisco Systems' first quarter earnings report.

Earnings and Revenue:

Analysts are looking ahead to a positive EPS of 34 cents/share and revenues of $11.01 billion. Cisco Systems' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 37 cents/share on revenues of $10.75 billion. We'll have to wait for Wednesday to see if the company 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 $18.18. Since January 1st, shares have declined 9.1%. For a full 12 months, the return has declined by 10.4%. 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 is a Hold. The strength of this rating has declined slightly over the past three months.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Cisco Systems' peers.

• ADTRAN (NASDAQ: ADTN): Moderate Buy with a $0.56 recent quarter EPS
• Alcatel-Lucent (NYSE: ALU): Hold with a $0.05 recent quarter EPS
• Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC): Hold with a $0.22 recent quarter EPS
• Extreme Networks (NASDAQ: EXTR): Hold with a $0.03 recent quarter EPS

The computer networks company's industry has seen price/earnings growth of 1.7% during the current fiscal year.

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:

That's your advanced look at Cisco Systems' upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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