Networking technology giant Cisco (NASDAQ: CSCO) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
Cisco beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $13.99 billion, up 9.4% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ billings estimates.
Is Cisco a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Cisco’s revenue to grow 10.7% year on year to $14.06 billion, a reversal from the 12.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.92 per share.
Analysts covering the company have generally 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, beating revenue estimates every single time over the past two years by 0.8% on average.
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 22.1%, missing analysts’ expectations by 17.9%, and Amdocs reported a revenue decline of 9.4%, in line with consensus estimates. Applied Digital traded down 36% following the results while Amdocs was up 3.5%.
Read our full analysis of Applied Digital’s results here and Amdocs’s results here.
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 12.6% on average over the last month. Cisco is up 7.2% during the same time and is heading into earnings with an average analyst price target of $67.29 (compared to the current share price of $61.54).
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