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Cisco (CSCO) to Post Q4 Earnings: Webex & Security in Focus
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Cisco Systems, Inc. (CSCO - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Aug 18.
Solid uptick in network security solutions along with ongoing momentum in Webex services due to continuation of remote work set up is likely to have favored the company’s top-line performance in the to-be-reported quarter.
However, coronavirus-induced supply chain constraints are likely to have acted as headwinds in fiscal fourth quarter.
Click here to know how Cisco’s overall fiscal fourth-quarter performance is expected to be.
Cisco’s Applications segment’s performance is expected to have benefited from higher demand for enterprise collaboration offerings due to coronavirus crisis induced work-from-home set up and adoption of hybrid/flexible work policy. This is likely to have bolstered the adoption of Cisco’s Webex solutions in the quarter to be reported.
Cisco introduced several new features, overhauled logo and identity of Webex in the quarter under review. The company combined the offerings from the acquisition of Slido and Socio Labs as well as added new features like My Voice Only (available from August 2021) and People Focus to Webex. Cisco has added over 800 new features and devices to Webex since September 2020.
Strength in unified communications, Internet of things (IoT) software and AppDynamics is likely to have favored segmental performance.
The Zacks Consensus Estimate for Applications revenues is pegged at $1.451 billion, suggesting growth of 6.9% from the year-ago quarter’s reported figure.
However, increasing investments in portfolio expansion, product enhancements and stiff competition from the likes of Microsoft (MSFT - Free Report) and Zoom Video (ZM - Free Report) in the enterprise communications domain might have acted as headwinds.
Solid Uptake of Security Offerings Holds Promise
Cisco’s revenues are likely to have benefitted from momentum in identity and access, advanced threat and unified threat management security solutions, owing to accelerated cybersecurity spend on the back of continued work from home set up globally. Solid uptake of cloud-based solutions, including Duo and Umbrella along with latest security solutions like SecureX and Secure Remote Worker, bodes well.
Cisco’s emphasis on portfolio innovation across cloud security solutions as well as differentiated end-to-end approach that helps secure identity, endpoints and the network is likely to have attracted more clients in fiscal fourth quarter.
The Zacks Consensus Estimate for Security revenues is pegged at $905 million, indicating an improvement of 11.2% from the year-ago quarter’s levels.
Healthy Uptake of Catalyst 9000K Augurs Well
Strength in the company’s Catalyst 9000 and Nexus 9000 switch solutions is likely to have driven revenue growth in the Infrastructure Platforms segment. Accelerated deployment of 5G and growing adoption of Wi-Fi 6 products and higher demand for Meraki solutions may have acted as tailwinds.
The Zacks Consensus Estimate for Infrastructure Platforms revenues is pegged at $7.112 billion, suggesting an improvement of 7.3% from the year-ago quarter’s reported figure.
Weak demand environment for server products is likely to have negatively impacted the segmental performance in the to-be-reported quarter. Also, stiff competition from Juniper (JNPR - Free Report) and Arista in networking infrastructure market might have limited margin expansion.
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Cisco (CSCO) to Post Q4 Earnings: Webex & Security in Focus
Cisco Systems, Inc. (CSCO - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Aug 18.
Solid uptick in network security solutions along with ongoing momentum in Webex services due to continuation of remote work set up is likely to have favored the company’s top-line performance in the to-be-reported quarter.
However, coronavirus-induced supply chain constraints are likely to have acted as headwinds in fiscal fourth quarter.
Click here to know how Cisco’s overall fiscal fourth-quarter performance is expected to be.
Cisco Systems, Inc. Revenue (Quarterly)
Cisco Systems, Inc. revenue-quarterly | Cisco Systems, Inc. Quote
Momentum in Webex Bodes Well
Cisco’s Applications segment’s performance is expected to have benefited from higher demand for enterprise collaboration offerings due to coronavirus crisis induced work-from-home set up and adoption of hybrid/flexible work policy. This is likely to have bolstered the adoption of Cisco’s Webex solutions in the quarter to be reported.
Cisco introduced several new features, overhauled logo and identity of Webex in the quarter under review. The company combined the offerings from the acquisition of Slido and Socio Labs as well as added new features like My Voice Only (available from August 2021) and People Focus to Webex. Cisco has added over 800 new features and devices to Webex since September 2020.
Strength in unified communications, Internet of things (IoT) software and AppDynamics is likely to have favored segmental performance.
The Zacks Consensus Estimate for Applications revenues is pegged at $1.451 billion, suggesting growth of 6.9% from the year-ago quarter’s reported figure.
However, increasing investments in portfolio expansion, product enhancements and stiff competition from the likes of Microsoft (MSFT - Free Report) and Zoom Video (ZM - Free Report) in the enterprise communications domain might have acted as headwinds.
Solid Uptake of Security Offerings Holds Promise
Cisco’s revenues are likely to have benefitted from momentum in identity and access, advanced threat and unified threat management security solutions, owing to accelerated cybersecurity spend on the back of continued work from home set up globally. Solid uptake of cloud-based solutions, including Duo and Umbrella along with latest security solutions like SecureX and Secure Remote Worker, bodes well.
Cisco’s emphasis on portfolio innovation across cloud security solutions as well as differentiated end-to-end approach that helps secure identity, endpoints and the network is likely to have attracted more clients in fiscal fourth quarter.
The Zacks Consensus Estimate for Security revenues is pegged at $905 million, indicating an improvement of 11.2% from the year-ago quarter’s levels.
Healthy Uptake of Catalyst 9000K Augurs Well
Strength in the company’s Catalyst 9000 and Nexus 9000 switch solutions is likely to have driven revenue growth in the Infrastructure Platforms segment. Accelerated deployment of 5G and growing adoption of Wi-Fi 6 products and higher demand for Meraki solutions may have acted as tailwinds.
The Zacks Consensus Estimate for Infrastructure Platforms revenues is pegged at $7.112 billion, suggesting an improvement of 7.3% from the year-ago quarter’s reported figure.
Weak demand environment for server products is likely to have negatively impacted the segmental performance in the to-be-reported quarter. Also, stiff competition from Juniper (JNPR - Free Report) and Arista in networking infrastructure market might have limited margin expansion.
At present, Cisco carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.