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California-based Cisco Systems, Inc. (CSCO) is an IP-based networking company serving service providers, businesses, commercial users, and individuals. The company also provides identity and access, advanced threat, and unified threat management solutions. Its market cap currently stands at $193.3 billion. Cisco Systems is scheduled to release its fiscal 2024 Q4 earnings results on Wednesday, Aug. 14.
Ahead of the event, analysts expect Cisco Systems to report a profit of $0.70 per share, down 30.7% from $1.01 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in each of the last four quarters. Its EPS of $0.72 for the last reported quarter surpassed the consensus estimate by 2.9%.
Over the longer term, analysts expect Cisco Systems to report an EPS of $3.14 in fiscal 2024, down 8.2% from $3.42 in fiscal year 2023.
Over the past 52 weeks, CSCO stock has dropped 7.9%, trailing behind the broader S&P 500 Index's ($SPX) 19.2% gains and the Technology Select Sector SPDR Fund’s (XLK) 21% returns during the same period.
Cisco's underperformance compared to the broader market is attributed to reduced demand from key telecom and service provider customers, macroeconomic uncertainty, extended equipment absorption, and slower growth in new orders.
The company released its Q3 earnings report on May 15, initially boosting its stock by 1.5%, but the stock declined in subsequent trading sessions. Despite exceeding analyst expectations, Cisco reported a 13% annual revenue decline and a significant drop in earnings, exacerbated by excess inventory and a notable decrease in customer orders.
The current consensus opinion on Cisco Systems stock is “Moderate Buy” overall. Out of 24 analysts covering the stock, five suggest a “Strong Buy,” two advocate a “Moderate Buy,” and the remaining 17 analysts advise a “Hold.”
The average price target for Cisco Systems is $54.50, indicating a potential upside of 13.6% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
