Cisco Shares Down Ahead Of Q4 Earnings As Layoffs Report Weighs

Ahead of the earnings announcement of Cisco Systems, Inc. CSCO, the focus has shifted to the reported job cuts move rather than the financial numbers. However, shares of the company traded down after the news. Tech news website, CRN, reported that the network equipment maker might lay off 20 percent of its jobs or 14,000. The company has already shown the exit door to 27,850 people in the last seven-year period. Despite such job cuts, the staff strength has grown over the years. As far as earnings expectations, it appears that there is a near unanimity among the different brokerages that Cisco will report EPS and revenue in line with the Street estimates. Another positive factor from the brokerages that they see enhanced margin from the company. For instance, Cowens expect the network equipment maker to report EPS of $0.61 on revenue of $12.6 billion. Similarly, Wunderlich expects EPS of $0.60 on revenue of $12.55 billion. Street analysts estimate the company to deliver EPS of $0.60 on $12.57 billion revenue for the fourth quarter. Their confidence is supported by ongoing enhancement in the security segment driven by relative strength from commercial and collaboration. Aside from that, investors would be looking for the guidance for the first quarter of the next fiscal year. There is also a near unanimity among the brokerages. Wunderlinch expects EPS of $0.61 on revenue of $12.55 billion. Cowens expects the company to provide in line EPS outlook of $0.60. In the last few days, the following brokerages have given their opinion on Cisco Shares. • Wunderlinch maintained Hold rating and kept a price tag of $27.00 • Drexel Hamilton also maintained its Buy rating and price target of $36.00 • Barclays lifted its price objective on Cisco shares from $31 to $34 and maintained Overweight rating • Jefferies and Citigroup maintained their Buy rating and a price tag of $35 At time of writing this, shares of the company shed $0.74, or 2.37 percent, to $30.38.