By Cisco Systems Inc.’s earnings have always been a reliable measure of the health of information-technology spending, and they will take on increased significance this Wednesday afternoon.
According to UBS analyst David Vogt, recent reports throughout the tech value chain have raised concerns about macro pressures, especially in Europe. As the first company in our portfolio to report with October results, Cisco’s performance will provide valuable insights into whether the market conditions are deteriorating or stabilizing.
While an elevated backlog is expected to continue benefiting Cisco’s own results, Vogt expresses concerns that the pace of order growth may not be on track to meet the full-year guide for fiscal 2024.
What to Expect
When Cisco releases its fiscal first-quarter results after the market closes on Wednesday, here’s what analysts are anticipating:
Earnings: FactSet analysts project that Cisco will post $1.03 per share in adjusted earnings, a significant increase from the previous year’s 86 cents per share.
Revenue: The FactSet consensus predicts that Cisco will generate $14.6 billion in fiscal first-quarter revenue, compared to $13.6 billion in the same period last year.
Stay tuned to see how Cisco’s performance influences the industry and the market as a whole.
Stock Movement
Shares of Cisco have gained following each of the company’s last five earnings reports. They’ve advanced about 12% so far this year as the Dow Jones Industrial Average DJIA has risen 5%.
What Analysts Are Saying:
Amit Daryanani – Evercore ISI analyst
James Fish – Piper Sandler analyst
“Inputs point to an inline / slight beat given the final quarter of backlog flush, but there is a fairly wide debate around lead metrics. For example, despite the easier compare, sentiment points to a ~10-15% decline in product orders, with concern for January-guide and potential for a ‘third’ cut for FY24 sales guide.”
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