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Will Webex and Security Aid Cisco's (CSCO) Q3 Earnings?
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Cisco Systems, Inc. (CSCO - Free Report) is set to report third-quarter fiscal 2020 results on May 13.
The company’s results are likely to reflect gains from robust adoption of Webex and strength in network security solutions, triggered by coronavirus-led work-from-home wave.
Click here to know how Cisco’s overall third-quarter performance is expected to be.
Strength in Webex Solutions: A Key Catalyst
The Applications segment’s fiscal third-quarter performance is expected to have benefited from high demand for enterprise collaboration offerings including Webex Meetings, Webex Devices and Webex Teams.
Coronavirus crisis led work-from-home wave has triggered the demand for teleconferencing, workspace collaboration and telehealth services. This, in turn, has bolstered the adoption of Cisco’s Webex solutions in the quarter to be reported.
Markedly, Cisco is integrating AI and ML capabilities into enterprise collaboration solutions aimed at increasing productivity of users and improving engagement. This is expected to have further augmented adoption of Webex services in the to-be-reported quarter amid stiff competition in the enterprise communication market from Microsoft’s (MSFT - Free Report) Teams, Slack and Zoom Video Communications.
The Zacks Consensus Estimate for Applications revenues is pegged at $1.41 billion, suggesting a decline of 1.5% from the year-ago reported figure.
Robust Security Portfolio Deserves a Special Mention
Solid demand witnessed by web security, unified threat, network security and advanced threat solutions in the fiscal second quarter is likely to have continued in the fiscal third quarter, primarily driven by growing spend on cybersecurity as employees work remotely amid the lockdowns.
The company’s expanded family of cloud security solutions that helps in securing identity, endpoints and the network is expected to have expanded customer base in the fiscal third quarter, primarily driven by rising security headwinds faced by enterprises globally.
The Zacks Consensus Estimate for Security is pegged at $769 million, indicating an improvement of 8.8% from the year-ago quarter.
Other Factors to Consider
Growing clout of the company’s Meraki solutions, and campus switches including Cat9K and Nexus 9K, are likely to have benefited Infrastructure Platforms segment’s performance in the fiscal third quarter.
Further, in data-center vertical, momentum in the HyperFlex data-center solution is likely to have continued in the fiscal third quarter, driven by coronavirus induced demand for Internet and cloud computing solutions. This, in turn, is likely to get reflected in the to-be-reported quarter’s results.
The Zacks Consensus Estimate for Infrastructure Platforms revenues is pegged at $7.083 billion, suggesting a decline of 6.1% from the year-ago reported figure.
Moreover, growing clout of Cisco Silicon One Q100 networking processor, which functions as both switch and routing chip, may have positively impacted the fiscal third-quarter performance. Markedly, Cisco’s new Silicon One Q100 has already been gaining traction among prominent companies with significant data center operations including Microsoft and Facebook.
Nevertheless, increasing investments on product enhancements and acquisitions amid stiff competition from Arista (ANET - Free Report) and Juniper in networking infrastructure market is likely to have limited margin expansion in the fiscal third quarter.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Will Webex and Security Aid Cisco's (CSCO) Q3 Earnings?
Cisco Systems, Inc. (CSCO - Free Report) is set to report third-quarter fiscal 2020 results on May 13.
The company’s results are likely to reflect gains from robust adoption of Webex and strength in network security solutions, triggered by coronavirus-led work-from-home wave.
Click here to know how Cisco’s overall third-quarter performance is expected to be.
Strength in Webex Solutions: A Key Catalyst
The Applications segment’s fiscal third-quarter performance is expected to have benefited from high demand for enterprise collaboration offerings including Webex Meetings, Webex Devices and Webex Teams.
Coronavirus crisis led work-from-home wave has triggered the demand for teleconferencing, workspace collaboration and telehealth services. This, in turn, has bolstered the adoption of Cisco’s Webex solutions in the quarter to be reported.
Markedly, Cisco is integrating AI and ML capabilities into enterprise collaboration solutions aimed at increasing productivity of users and improving engagement. This is expected to have further augmented adoption of Webex services in the to-be-reported quarter amid stiff competition in the enterprise communication market from Microsoft’s (MSFT - Free Report) Teams, Slack and Zoom Video Communications.
The Zacks Consensus Estimate for Applications revenues is pegged at $1.41 billion, suggesting a decline of 1.5% from the year-ago reported figure.
Cisco Systems Inc Revenue (Quarterly)
Cisco Systems Inc revenue-quarterly | Cisco Systems Inc Quote
Robust Security Portfolio Deserves a Special Mention
Solid demand witnessed by web security, unified threat, network security and advanced threat solutions in the fiscal second quarter is likely to have continued in the fiscal third quarter, primarily driven by growing spend on cybersecurity as employees work remotely amid the lockdowns.
The company’s expanded family of cloud security solutions that helps in securing identity, endpoints and the network is expected to have expanded customer base in the fiscal third quarter, primarily driven by rising security headwinds faced by enterprises globally.
The Zacks Consensus Estimate for Security is pegged at $769 million, indicating an improvement of 8.8% from the year-ago quarter.
Other Factors to Consider
Growing clout of the company’s Meraki solutions, and campus switches including Cat9K and Nexus 9K, are likely to have benefited Infrastructure Platforms segment’s performance in the fiscal third quarter.
Further, in data-center vertical, momentum in the HyperFlex data-center solution is likely to have continued in the fiscal third quarter, driven by coronavirus induced demand for Internet and cloud computing solutions. This, in turn, is likely to get reflected in the to-be-reported quarter’s results.
The Zacks Consensus Estimate for Infrastructure Platforms revenues is pegged at $7.083 billion, suggesting a decline of 6.1% from the year-ago reported figure.
Moreover, growing clout of Cisco Silicon One Q100 networking processor, which functions as both switch and routing chip, may have positively impacted the fiscal third-quarter performance. Markedly, Cisco’s new Silicon One Q100 has already been gaining traction among prominent companies with significant data center operations including Microsoft and Facebook.
Nevertheless, increasing investments on product enhancements and acquisitions amid stiff competition from Arista (ANET - Free Report) and Juniper in networking infrastructure market is likely to have limited margin expansion in the fiscal third quarter.
Zacks Rank
Cisco currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>