Cisco Systems Inc (NASDAQ:CSCO) could show more signs of a multi-year turnaround that has the stock trading near all-time highs set in 2000 ahead of fourth-quarter financial results after market close Wednesday.
Here are the key analyst estimates and items to watch ahead of the report.
Earnings Estimates: Analysts expect Cisco to report fourth-quarter revenue of $14.62 billion, up from $13.64 billion in last year's fourth quarter, according to data from Benzinga Pro.
The company has missed analyst estimates for revenue in two straight quarters, while beating estimates in eight of the last 10 quarters overall.
If Cisco meets or beats the $14.62 billion estimate, it would be the highest quarterly total in seven quarters.
Analysts expect the company to report earnings of 98 cents per share for the fourth quarter, up from 87 cents per share in last year's fourth quarter.
The company reported in-line earnings last quarter and have beaten analyst estimates in eight of the last 10 quarters overall.
Guidance from Cisco calls for fourth-quarter earnings per share to be in a range of 96 cents to 98 cents per share. The company previously guided for revenue to be in a range of $14.5 billion and $14.7 billion.
Read Also: How To Earn $500 A Month From Cisco Stock Ahead Of Q4 Earnings
Key Items to Watch: Freedom Capital Markets Chief Global Strategist Jay Woods highlights the turnaround in Cisco shares that has been going on for years.
"Up until last year my favorite thing to say about this Dow component was that if you owned this in 2000, then congrats – you are now even! This is no longer true," Woods said in a weekly newsletter.
Woods said the stock that "has languished for years" has shown growth through strategic acquisitions and organically.
"Something has finally changed for this late 90's darling."
Woods said the Splunk acquisition is one of several deals that have helped the company consistently beat analyst estimates and caused the stock to break out.
Woods said it could take a big surprise beat or miss to really move Cisco stock given its past volatility of +/- 5% on earnings day.
Several analysts raised their price targets on the stock ahead of the earnings report. Here are recent analyst ratings on Cisco and their price targets:
- UBS: Maintained Neutral rating, raised price target from $70 to $74
- Evercore ISI Group: Downgraded from Outperform to In-Line, maintained price target of $72
- Morgan Stanley: Maintained Overweight rating, raised price target from $67 to $70
- JPMorgan: Maintained Overweight rating, raised price target from $73 to $78
Cisco's last quarter saw the company report product orders were up 20% year-over-year, thanks to organic growth and Splunk. The company said it was seeing growth across all geographies and customer markets.
Analysts and investors will be looking for more growth and optimism like that in the third quarter report.
"The momentum we are seeing with AI is fueled by the power of our secure networking portfolio, our trusted global partnerships, and the value we bring to our customers," Cisco CEO Chuck Robbins said after third-quarter results.
The company raised its full-year guidance for earnings per share and revenue after third-quarter results. Investors and analysts will be looking to see the company's guidance for the next fiscal year and hoping for positive momentum going into the new fiscal year.
CSCO Price Action:
CSCO Price Action: Cisco Systems shares were up 0.57% at $71.79 during premarket trading on Wednesday, according to Benzinga Pro data. The stock 52-week trading range of $44.89 to $72.55 and is up 20.8% year-to-date in 2025.
Read Next:
Photo: MacroEcon/Shutterstock
