Networking technology giant Cisco (NASDAQ: CSCO) will be announcing earnings results this Wednesday after market hours. Here’s what you need to know.
Cisco beat analysts’ revenue expectations last quarter, reporting revenues of $15.35 billion, up 9.7% year on year. It was a strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ revenue estimates.
Is Cisco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Cisco’s revenue to grow 9.9% year on year, slowing from the 11.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cisco has a history of exceeding Wall Street’s expectations.
Looking at Cisco’s peers in the it services & other tech segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Applied Digital delivered year-on-year revenue growth of 139%, beating analysts’ expectations by 67.3%, and Gartner reported a revenue decline of 1.5%, in line with consensus estimates. Applied Digital traded down 8% following the results while Gartner was up 2.3%.
Read our full analysis of Applied Digital’s results here and Gartner’s results here.
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 6.5% on average over the last month. Cisco is up 20.7% during the same time and is heading into earnings with an average analyst price target of $89.54 (compared to the current share price of $99.42).
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