Cisco (CSCO) to Report Q2 Earnings: Key Factors to Consider
Cisco Systems CSCO is set to release its second-quarter fiscal 2023 results on Feb 15.
The company anticipates second-quarter fiscal 2023 revenues to increase in the range of 4.5-6.5% on a year-over-year basis. Non-GAAP earnings are anticipated to be between 84 and 86 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $13.43 billion, indicating an increase of 5.61% from the year-ago quarter’s reported figure.
Our estimate is pegged at $13.30 billion, suggesting year-over-year growth of 4.5%.
The consensus mark for earnings has been stable in the past 30 days at 86 cents per share. The figure suggests an increase of 2.44% from the prior-year quarter’s levels.
Cisco Systems, Inc. Price and EPS Surprise
Cisco Systems, Inc. price-eps-surprise | Cisco Systems, Inc. Quote
Our estimate for earnings stands at 85 cents per share, indicating 1.4% year-over-year growth.
Let’s see how things have shaped up for Cisco prior to this announcement.
Factors Likely to Influence Q2 Results
Cisco’s second-quarter fiscal 2023 results are expected to benefit from easing supply chain constraints. Its extensive product portfolio and varied end-user base are also expected to have contributed to its top-line growth.
The company’s results in the to-be-reported quarter are expected to benefit 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 second quarter.
Moreover, the availability of Microsoft teams on Cisco meeting room devices is expected to have driven demand for these devices.
Nevertheless, the fiscal second-quarter results are expected to reflect the lingering effects of COVID-related lockdowns in China, challenging macroeconomic conditions and a strong U.S. dollar.
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. That’s the case here.
Cisco has an Earnings ESP of +1.66% 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.
Other Stocks to Consider
Here are a few other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:
Salesforce CRM has an Earnings ESP of +0.32% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Salesforce shares have declined 19.1% in the past year. CRM is set to report its fourth-quarter fiscal 2023 results on Mar 1.
Cambium Networks CMBM has an Earnings ESP of +2.46% and a Zacks Rank #3.
Cambium shares have declined 9.2% in the past year. CMBM is set to report its fourth-quarter 2022 results on Feb 16.
Airbnb ABNB has an Earnings ESP of +8.10% and a Zacks Rank #3.
ABNB shares have declined 35.9% in the past year. Airbnb is set to report its fourth-quarter 2022 results on Feb 14.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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