Back to top

Analyst Blog

Cisco Systems (CSCO - Analyst Report) reported fourth quarter numbers after the bell today.  EPS came in at $0.49 verse Zacks Consensus Estimate of $0.47, and Revenues of $12.42 billion, slightly beat the Zacks Estimate. 

According to Zacks Expected Surprise Predictor (ESP), there has been a 100% positive analysts agreement over the past 60 days, and four consecutive quarters with an average positive surprise of 6.52% (the fourth quarter being a positive 4.26% surprise).  Therefore, the ESP model indicated a small but positive surprise for the fourth quarter 2013.

The street was concerned with Juniper Networks (JNPR - Analyst Report), and Hewlett Packard (HPQ - Analyst Report), and their recent price discounting.  Analysts were worried that the new promotions would cut into Cisco’s margins.  Cisco was able to deflect this competition by offering discounts; Catalysts Switch Promo, UCS discount for new users, and WAN Optimization to name a few. 

Chairman and CEO John Chambers stated that, “My confidence in our ability to be the #1 IT Company is increasing. Our fourth quarter was a record on many fronts, with record revenue, and record non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per share. In every case, we exceeded the midpoint of our guidance. We also generated $4 billion in operating cash flow in the quarter, another record.”

While the Chairman might be high on his company, the street is actually disappointed with the results.  In afterhours trading, CSCO is down over 4%.  Yet, Mr. Chambers did later concede (during analyst’s conference call) that his company is amidst, “what continues to be a challenging and inconsistent global macroeconomic environment."  Moreover, the CEO stated that he did not see this changing anytime in the short term. 

Zacks Investment Research will post a detailed earnings report tomorrow morning.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%