Yahoo Finance Cisco (CSCO) to Report Q1 Earnings: Key Factors to Consider
Cisco Systems CSCO is set to release its first-quarter fiscal 2024 results on Nov 15.
The company anticipates first-quarter fiscal 2024 revenues to be between $14.5 billion and $14.7 billion. Non-GAAP earnings are expected between $1.02 and $1.04 per share.
The Zacks Consensus Estimate for revenues is pegged at $14.61 billion, indicating an increase of 7.17% from the year-ago quarter’s reported figure.
The consensus mark for earnings has been stable in the past 30 days at $1.03 per share. The figure suggests an increase of 19.77% from the prior-year quarter’s levels.
Let’s see how things have shaped up for Cisco prior to this announcement.
Cisco Systems, Inc. Price and EPS Surprise
Cisco Systems, Inc. price-eps-surprise | Cisco Systems, Inc. Quote
Factors Likely to Influence Q1 Results
Cisco’s first-quarter fiscal 2024 results are expected to have suffered from seasonal weakness. However, it is 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 first 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 (AI) features to Webex is expected to have driven the user base in the to-be-reported quarter.
Key Development in Q1
In the fiscal first quarter, based on its partnership with NVIDIA NVDA, Cisco announced the launch of Room Kit EQX and the expansion of its Cinematic Meetings capabilities, both powered by the former's AI engine.
The partnership with NVIDIA is helping Cisco to offer enhancing collaboration experiences with audio and video intelligence and enabling more equitable hybrid meetings.
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 0.00% and currently carries a Zacks Rank #3. 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:
NetEase NTES has an Earnings ESP of +0.30% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
NetEase shares have gained 56.8% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
Snowflake SNOW has an Earnings ESP of +15.71% and a Zacks Rank of 2 at present.
Snowflake shares have gained 11.7% in the year-to-date period. SNOW is set to report its third-quarter fiscal 2024 results on Nov 29.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
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