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Cisco (CSCO) to Report Q4 Earnings: Key Factors to Consider

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Cisco Systems (CSCO - Free Report) is set to release its fourth-quarter fiscal 2023 results on Aug 16.

The company anticipates fourth-quarter fiscal 2023 revenues to increase in the range of 14-16% on a year-over-year basis. Non-GAAP earnings are anticipated to be between $1.05 and $1.07 per share.

The Zacks Consensus Estimate for revenues is pegged at $15.05 billion, indicating an increase of 12.1% from the year-ago quarter’s reported figure.

The consensus mark for earnings has been stable in the past 30 days at $1.06 per share. The figure suggests an increase of 27.71% from the prior-year quarter’s levels.

Cisco Systems, Inc. Price and EPS Surprise

Cisco Systems, Inc. Price and EPS Surprise

Cisco Systems, Inc. price-eps-surprise | Cisco Systems, Inc. Quote

Let’s see how things have shaped up for Cisco prior to this announcement.

Factors Likely to Influence Q4 Results

Cisco’s fourth-quarter fiscal 2023 results are expected to have benefited from its extensive product portfolio and varied end-user base. The company’s top-line growth is expected to reflect benefits from strong demand for the Catalyst 9000 family, Cisco 8000, Wireless, Meraki, ThousandEyes and Duo solutions.

Cisco has been witnessing robust demand for its 400-gig products and the trend is expected to have continued in the fiscal fourth quarter.

Moreover, the availability of Microsoft Teams on Cisco meeting room devices is expected to have driven demand for these devices. The addition of artificial intelligence features to Webex is expected to have driven the user base in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Cisco has an Earnings ESP of -0.30% and currently carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

NVIDIA (NVDA - Free Report) has an Earnings ESP of +5.56% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA shares have jumped 114.7% in the year-to-date period. NVDA is set to report its second-quarter fiscal 2024 results on Aug 23.

Workday (WDAY - Free Report) has an Earnings ESP of +2.01% and a Zacks Rank #1.

Workday shares have gained 26.1% year to date. WDAY is set to report its second-quarter fiscal 2024 results on Aug 24.

Bilibili (BILI - Free Report) has an Earnings ESP of +2.44% and a Zacks Rank #3.

Bilibili shares have declined 36.6% year to date. BILI is set to report its second-quarter 2023 results on Aug 17.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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