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Cisco Systems Q3 Preview: Another EPS Beat Inbound?
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The Zacks Computer and Technology sector has been strong over the last month, up 11% and marginally outperforming the S&P 500.
A widely-recognized name in the realm, Cisco Systems, Inc. (CSCO - Free Report) , is on deck to unveil Q1 earnings on November 16th, after the market close.
Cisco Systems is an IP-based networking company offering products and services to service providers, companies, commercial users, and individuals.
Currently, the company carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a B.
How does everything else stack up? Let’s take a closer look.
Share Performance & Valuation
CSCO shares have struggled to find their footing in 2022, down more than 25% and underperforming the S&P 500 by a fair margin.
Image Source: Zacks Investment Research
However, over the last month, CSCO shares have tacked on nearly 10% in value, outperforming the S&P 500 by a fair margin and indicating that buyers have finally stepped up to the plate.
Image Source: Zacks Investment Research
CSCO shares currently trade at a 14.5X forward earnings multiple, nicely beneath the 17.1X five-year median and representing a 36% discount relative to the Zacks Computer and Technology sector.
The company sports a Style Score of a B for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
A singular analyst has upped their earnings outlook over the last several months, with the Zacks Consensus EPS Estimate of $0.84 suggesting a 2.5% Y/Y uptick in earnings.
Image Source: Zacks Investment Research
Cisco’s top-line also looks to register some growth, with the Zacks Consensus Sales Estimate of $13.3 billion indicating an improvement of 3.3% from year-ago quarterly sales of $12.9 billion.
Quarterly Performance
CSCO has an impressive earnings track record, exceeding the Zacks Consensus EPS Estimate in 20 consecutive quarters. Just in its latest print, the company registered a modest 1.2% bottom-line beat.
Top-line results have been primarily mixed across its last four reports, with two revenue beats and two misses. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
CSCO shares are in the red year-to-date but have outperformed the S&P 500 over the last month, perhaps indicating that the tide has started to turn.
The company sports a Style Score of a B for Value, with its current forward earnings multiple well below its five-year median and Zacks sector average.
One analyst has upped their earnings outlook for the quarter, with estimates indicating a Y/Y uptick in both revenue and earnings.
CSCO has consistently exceeded EPS expectations, but revenue results have been primarily mixed as of late.
Heading into the release, Cisco Systems, Inc. (CSCO - Free Report) carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 1.5%.
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Cisco Systems Q3 Preview: Another EPS Beat Inbound?
The Zacks Computer and Technology sector has been strong over the last month, up 11% and marginally outperforming the S&P 500.
A widely-recognized name in the realm, Cisco Systems, Inc. (CSCO - Free Report) , is on deck to unveil Q1 earnings on November 16th, after the market close.
Cisco Systems is an IP-based networking company offering products and services to service providers, companies, commercial users, and individuals.
Currently, the company carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a B.
How does everything else stack up? Let’s take a closer look.
Share Performance & Valuation
CSCO shares have struggled to find their footing in 2022, down more than 25% and underperforming the S&P 500 by a fair margin.
Image Source: Zacks Investment Research
However, over the last month, CSCO shares have tacked on nearly 10% in value, outperforming the S&P 500 by a fair margin and indicating that buyers have finally stepped up to the plate.
Image Source: Zacks Investment Research
CSCO shares currently trade at a 14.5X forward earnings multiple, nicely beneath the 17.1X five-year median and representing a 36% discount relative to the Zacks Computer and Technology sector.
The company sports a Style Score of a B for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
A singular analyst has upped their earnings outlook over the last several months, with the Zacks Consensus EPS Estimate of $0.84 suggesting a 2.5% Y/Y uptick in earnings.
Image Source: Zacks Investment Research
Cisco’s top-line also looks to register some growth, with the Zacks Consensus Sales Estimate of $13.3 billion indicating an improvement of 3.3% from year-ago quarterly sales of $12.9 billion.
Quarterly Performance
CSCO has an impressive earnings track record, exceeding the Zacks Consensus EPS Estimate in 20 consecutive quarters. Just in its latest print, the company registered a modest 1.2% bottom-line beat.
Top-line results have been primarily mixed across its last four reports, with two revenue beats and two misses. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
CSCO shares are in the red year-to-date but have outperformed the S&P 500 over the last month, perhaps indicating that the tide has started to turn.
The company sports a Style Score of a B for Value, with its current forward earnings multiple well below its five-year median and Zacks sector average.
One analyst has upped their earnings outlook for the quarter, with estimates indicating a Y/Y uptick in both revenue and earnings.
CSCO has consistently exceeded EPS expectations, but revenue results have been primarily mixed as of late.
Heading into the release, Cisco Systems, Inc. (CSCO - Free Report) carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 1.5%.