Cisco Systems is scheduled to report earnings after Wednesday’s close. In 2000, the stock hit a record high near $82/share and is currently trading near $60/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $0.87/share on $13.76 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.89/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company’s earnings have been steady over the last few years. In 2020 the company earned $3.21/share. In 2021, earnings grew by a penny to $3.22/share. In 2022, earnings came in at $3.36/share. In 2023, earnings grew to $3.89/share. In 2024, earnings are expected to fall to $3.73/share. Then fall again in 2025 to $3.57/share and grow to $3.87 a share in 2026. Investors typically like growth, and the company hasn’t really enjoyed a lot of growth recently. Meanwhile, the stock sports a price to earnings ratio of only 16 which is only less than the S&P 500.
A Closer Look At The Technicals
Technically, the stock is acting very well and just hit multi-year high. In the short-term the stock is extended and can easily pullback if earnings fail to impress. That said, the stock can easily gap up and that’s what the bulls want to see after earnings are announced. Meanwhile, the bears want to see it gap down and fall.
Company Profile
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; and wireless products include indoor and outdoor wireless coverage designed for seamless roaming use of voice, video, and data applications. In addition, it provides security, which comprising network security, identity and access management, secure access service edge, and threat intelligence, detection, and response offerings; collaboration products, such as Webex Suite, collaboration devices, contact center, and communication platform as a service; end-to-end collaboration solutions that can be delivered from the cloud, on-premise or within hybrid cloud environments allowing customers to transition their collaboration solutions from on-premise to the cloud; and observability offers network assurance, monitoring and analytics and observability suite. Further, the company offers a range of service and support options for its customers, including technical support and advanced services and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured on FindLeadingStocks.com