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Cisco Systems (CSCO) to Report Q4 Earnings: Factors to Note

Cisco Systems CSCO is set to release fourth-quarter fiscal 2022 results on Aug 17.

The company anticipates fourth-quarter fiscal 2022 revenues to decline in the range of 1-5.5% on a year-over-year basis. Non-GAAP earnings are anticipated to be between 76 and 84 cents per share.

The Zacks Consensus Estimate for revenues is pegged at $12.75 billion, indicating a decrease of 2.85% over the year-ago quarter’s reported figure.

The consensus mark for earnings has been stable in the past 30 days at 82 cents per share. The figure suggests a decline of 2.38% from the prior-year quarter’s levels.

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 2022 results are expected to suffer from supply chain constraints related to certain components due to COVID-related lockdowns in China as well as the negative impact of the ongoing war between Russia and Ukraine.

In March, Cisco stopped business operations in both Russia and Belarus. This move negatively impacted revenues by $200 million in the fiscal third quarter.

However, Cisco’s extensive product portfolio and the varied end-user base are expected to have positively contributed to the fiscal fourth-quarter top-line growth.

Cisco has raised the prices of its solutions a couple of times in the past eight months. Higher prices are expected to have somewhat offset inflation, thereby driving fiscal fourth-quarter top-line growth.

Cisco’s revenues are likely to have benefited from momentum in web-scale, servers, wireless, security and SD WAN businesses. The company has been benefiting from ongoing investments that its customers are making to rapidly digitize their organizations.

Higher bandwidth requirements by customers are expected to have driven demand for Acacia’s optical solutions 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 0.00% and carries a Zacks Rank #3 currently. 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:

Intuit INTU has an Earnings ESP of +1.92% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

INTU is scheduled to release fourth-quarter fiscal 2022 results on Aug 23.

Keysight KEYS has an Earnings ESP of +1.23% and a Zacks Rank #2.

KEYS is scheduled to release third-quarter fiscal 2022 results on Aug 17.

Dell Technologies DELL has an Earnings ESP of +3.07% and a Zacks Rank #3.

DELL is scheduled to release second-quarter fiscal 2023 results on Aug 25.

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

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